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

<figure> <img alt="Illustration of Amazon’s logo on a black, orange, and tan background." data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/23935558/acastro_STK103__01.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">The FTC and 22 state attorneys general are <a href="https://www.ftc.gov/news-events/news/press-releases/2026/08/ftc-states-sue-amazon-over-secret-ad-surcharge-scheme">suing Amazon</a> for allegedly using a "secret ad surcharge" to drive up prices for ads on its website and app. FTC chairman Andrew Ferguson claims in a blog post on the lawsuit that the higher advertising prices "were largely passed on to American consumers." According to <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/AmazonAds-Complaint.pdf">the complaint</a>, Amazon violated the FTC Act and over a dozen state laws. This lawsuit comes almost a year after Amazon agreed to pay $2.5 billion to <a href="https://www.theverge.com/news/785744/amazon-ftc-prime-subscription-settlment">settle an earlier FTC lawsuit</a> over Prime subscription practices. </p> <p class="wp-block-paragraph">In Amazon's "second price" auctions for ads on its platform, the winning bidder is supposed to only pay one cent more tha …</p> <p><a href="https://www.theverge.com/tech/986982/amazon-advertising-prices-ftc-lawsuit">Read the full story at The Verge.</a></p>