Coverage spread: 2 sources — 1 left · 1 center
Lean ratings via AllSides / Media Bias-Fact-Check. How this works.
Where they agree
- The FTC, joined by 22 state attorneys general, sued Amazon on Monday over alleged secret advertising surcharges.
- The suit claims Amazon manipulated its ad auction pricing for advertisers using sponsored products, brand and display ads.
- Both report FTC Chairman Andrew Ferguson’s statement that advertisers were misled into paying higher prices, costs that were largely passed on to consumers.
- Amazon had not responded to requests for comment at the time of publication.
Where they differ
- CBS News specifies the alleged scheme lasted seven years and affected more than 1 million brands and sellers, details CNBC does not include.
- CNBC ties the alleged surcharges to a specific 2019 change in Amazon’s auction rules and notes Amazon’s $68 billion ad revenue last year, framing it within Amazon’s position as the third-largest digital advertiser behind Google and Meta.
- CBS News lists all 22 participating states by name; CNBC only states the number.
The Federal Trade Commission, joined by attorneys general from 22 states, filed a lawsuit against Amazon on Monday, accusing the company of secretly inflating prices in its advertising auctions for seven years. The suit claims Amazon overcharged more than 1 million brands and sellers, potentially reaping over $20 billion, with those costs largely passed on to consumers.
What does the lawsuit accuse Amazon of doing?
The complaint, filed in U.S. District Court for the Western District of Washington, alleges Amazon “secretly and systematically overcharged” advertisers by manipulating its pricing and auction systems. According to the filing, the scheme traces back to a change in Amazon’s auction rules that took effect in 2019 and involved undisclosed, or “hidden,” surcharges added to what advertisers were billed. The lawsuit centers on three ad formats Amazon sells alongside its search results and product listings: sponsored products ads, brand ads and display ads.
How many advertisers were affected and how much money is at stake?
The FTC says more than 1 million brands and sellers who advertise on Amazon were required to pay the inflated prices over roughly seven years. The agency estimates Amazon may have collected more than $20 billion from advertisers through the alleged hidden surcharges. Amazon’s advertising business is the third-largest in digital advertising worldwide, behind only Google and Meta, and brought in more than $68 billion in revenue last year, with sponsored products ads making up the largest share.
Which states joined the case?
Twenty-two state attorneys general joined the FTC in the suit: Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont and Washington.
What has the FTC said about the case?
FTC Chairman Andrew Ferguson said in a statement that “Amazon has millions of advertising customers who were misled into paying significantly higher prices” and that “these higher costs were largely passed on to American consumers.” Ferguson framed the case as an example of the harm that can result when one of the world’s largest online retailers engages in what he called unfair and deceptive conduct.
How has Amazon responded?
As of the initial reporting, Amazon had not responded to requests for comment on the lawsuit. Both outlets note the story was still developing at the time of publication.
Why this case matters
The lawsuit adds to a string of regulatory actions targeting Amazon’s business practices and comes as the FTC continues to scrutinize how dominant tech platforms price their services to third-party sellers and advertisers who depend on them to reach customers. Because Amazon’s advertising arm has grown into a major profit engine and one of the largest ad platforms globally, allegations that it quietly manipulated auction pricing go to the heart of how the company monetizes its marketplace — and raise questions about transparency practices across the digital ad industry more broadly.
Sources
Featured photo: SounderBruce via Wikimedia Commons (CC BY-SA 4.0)