FTC and 22 States Sues Amazon Over Secret Advertising Surcharge Scam.

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Tonernews.com, September 2, 2026. USA
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  • jim
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    The Federal Trade Commission (FTC), joined by 22 state attorneys general, has sued Amazon, alleging the retail giant secretly manipulated its digital advertising auction system to charge advertisers more than they expected. According to the FTC, Amazon allegedly used a hidden “surcharge” mechanism that caused advertisers to pay substantially higher prices in Sponsored Products auctions, with the agency claiming the practice could have extracted tens of billions of dollars from businesses. The FTC says Amazon’s advertising system was represented as a second-price auction, where the winning advertiser generally pays just enough to beat the next-highest bidder, but regulators allege Amazon secretly introduced pricing mechanisms that pushed advertisers toward paying their full bids. The allegations could have major implications for Amazon sellers, including businesses marketing toner, ink cartridges, printers and other office technology products, because higher advertising costs can make it significantly more expensive for independent sellers and remanufacturers to compete for visibility. The lawsuit also raises a much bigger question about Amazon’s enormous power as both an online marketplace and advertising platform: when sellers depend on Amazon to reach customers, who is really controlling the price of getting noticed? The case is still pending, and Amazon will have the opportunity to defend itself against the FTC’s allegations.
    Click here for the news release from the FTC. Click here for Amazon’s reponse to this lawsuit. 

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