FTC Sues Amazon Over Alleged $20 Billion Advertising Overcharges

The Federal Trade Commission (FTC) filed a lawsuit against Amazon (AMZN) claiming the company overcharged advertisers by more than $20 billion through hidden surcharges. This lawsuit joins 22 state attorneys general and is based on changes to Amazon's auction rules from 2019. Amazon refuted the allegations, stating it saved advertisers $8 billion from 2021 to 2025. The outcome of this case could impact advertisers' trust and Amazon's significant advertising revenue, which exceeded $68 billion last year.