FTC lawsuit alleges Amazon has been ‘secretly and systematically’ overcharging for ads

The FTC and 22 state attorneys general allege Amazon used a secret ad surcharge to systematically raise prices for ads on its website and app. The complaint says the practice violated federal and state laws, with regulators arguing the higher ad costs were largely passed on to shoppers.

The case adds pressure to Amazon’s advertising business, a major profit engine tied closely to its marketplace dominance. It also signals regulators are scrutinizing how ad auction mechanics can quietly affect both sellers’ costs and consumer prices.