FTC Sues Amazon Over Alleged Advertising Auction Manipulation

Amazon's stock price fell 1.8% to $255.09 on Tuesday after the Federal Trade Commission filed a lawsuit against the company.

The FTC alleges that Amazon manipulated advertising auctions, extracting more than $20 billion from over 1.2 million advertisers through undisclosed 'soft reserve prices' introduced in 2019.

Regulators claim Amazon misrepresented how it priced Sponsored Products, affecting more than 500,000 small- and medium-sized businesses.

The case was filed Monday in federal court in Washington state, joined by 22 states.