Amazon Sued by FTC Over Alleged Advertising Misleading

The US Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that the e-commerce giant misled advertisers about pricing. The FTC claims that Amazon's advertising auctions do not properly disclose terms and pricing associated with advertisements, including sponsored listings that appear prominently in search results.

Amazon disputed the allegations, stating that FTC investigators had misrepresented how its advertising auctions operate and provided no evidence of harm to shoppers. According to Amazon, its auctions prioritize products relevant to search terms before considering bids.

The lawsuit is not the first time Amazon has faced scrutiny from regulators. In 2025, the company agreed to pay $2.5 billion to resolve a separate investigation involving its Prime subscription practices.