{"id":2652524,"date":"2026-08-31T17:49:41","date_gmt":"2026-08-31T21:49:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-22-states-sue-amazon-over-alleged-hidden-surcharges-for-advertisers\/"},"modified":"2026-08-31T17:54:31","modified_gmt":"2026-08-31T21:54:31","slug":"ftc-22-states-sue-amazon-over-alleged-hidden-surcharges-for-advertisers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-22-states-sue-amazon-over-alleged-hidden-surcharges-for-advertisers\/","title":{"rendered":"FTC, 22 states sue Amazon over alleged &#8216;hidden surcharges&#8217; for advertisers"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fftc-22-states-sue-amazon-over-alleged-hidden-surcharges-for-advertisers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2652524&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Federal Trade Commission (FTC) adn 22 states filed a lawsuit against Amazon, alleging that the company misled advertisers over the past seven years by secretly imposing hidden surcharges that inflated advertising costs. The complaint claims Amazon falsely represented its auction process as using a second-price model, but instead added undisclosed surcharges, leading to over $20 billion in illegally extracted revenue from approximately 1.2 million advertising clients. In 2019, Amazon reportedly changed its auction rules to include these hidden fees, betraying advertisers&#8217; trust and increasing their costs. Amazon, the third-largest digital advertising business globally with over $68 billion in revenue, disputes the allegations, claiming advertisers adjust bids based on performance and that they saved billions by optimizing ad relevance. The lawsuit is part of ongoing legal actions against Amazon, including a separate antitrust trial scheduled for February 2027, which alleges the company used its market power to inflate prices and diminish competition.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/ftc\/\" data-type=\"post_tag\" data-id=\"2093\">Federal Trade Commission<\/a> and a bipartisan coalition of 22 states sued <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/amazon\/\" data-type=\"post_tag\" data-id=\"657\">Amazon<\/a> on Monday for allegedly misleading advertisers over the past seven years by imposing \u201chidden surcharges.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/AmazonAds-Complaint.pdf\" data-type=\"link\" data-id=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/AmazonAds-Complaint.pdf\">complaint<\/a>, filed in the Western District of Washington, where the online retailer\u2019s main headquarters is based, alleges Amazon secretly inflated the prices that roughly 1.2 million advertising customers were required to pay for placing ads on its shopping platform. This was done through the technology company\u2019s advertising auction process.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4706792\/ftc-lawsuit-amazon-advertisers-hidden-surcharges\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>FTC and 22 states sue Amazon over alleged \u2018hidden surcharges\u2019 for advertisers<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4704724\/brendan-carr-fcc-ownership-cap-agency-power\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Conservatives clash over Brendan Carr\u2019s bid to scrap congressionally mandated TV ownership cap<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4704843\/walmart-doj-settlement-opioid-dispensing-controlled-substances-act\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Walmart settles with DOJ over <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/walmart-settles-with-doj-over-alleged-unlawful-opioid-dispensing\/\" title=\"Walmart settles with DOJ over alleged unlawful opioid dispensing\">alleged unlawful opioid dispensing<\/a><\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">In a typical generalized-second-price auction, the winning bidder pays the amount of the second-highest bid instead of its own bid. Amazon allegedly deceived its advertisers by claiming the second-price model was used to determine advertising auction prices when, in reality, the price was inflated with a hidden surcharge.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">In 2019, Amazon quietly changed its auction rules to include an undisclosed surcharge that would have to be paid by the online brands and sellers advertising on the platform.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThis bait and switch betrayed advertisers\u2019 trust and extracted billions of dollars at their expense,\u201d FTC Chairman Andrew Ferguson <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/AFergusonFTC\/status\/2094510420606562600\" data-type=\"link\" data-id=\"https:\/\/x.com\/AFergusonFTC\/status\/2094510420606562600\">said<\/a>. \u201cAmazon imposed this elaborate scheme on Americans for a simple reason: it wanted more money.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The plaintiffs estimated that more than $20 billion was \u201cillegally extracted\u201d from the e-commerce giant\u2019s advertising customers.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Amazon, considered the third-largest digital advertising business worldwide, amassed over $68 billion in advertising revenue last year. Much of this revenue came from ad sales for sponsored products.<\/p>\n<p class=\"wp-block-paragraph\">The FTC was joined in filing the lawsuit by the attorneys general of 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. Texas filed a similar lawsuit on its own.<\/p>\n<p class=\"wp-block-paragraph\">Amazon responded to the federal lawsuit in a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.aboutamazon.com\/company-news\/amazon-ftc-sponsored-ads-lawsuit-response\" data-type=\"link\" data-id=\"https:\/\/www.aboutamazon.com\/company-news\/amazon-ftc-sponsored-ads-lawsuit-response\">blog post<\/a>, calling the legal action \u201cmisguided\u201d while disputing the facts of the case.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cThe FTC\u2019s claim fundamentally misunderstands how advertisers operate,\u201d the company said. \u201cAdvertisers adjust bids based on real-world performance, not descriptions of auction mechanics. Even accepting the FTC\u2019s flawed premise that advertisers do not adjust bids, we estimate they saved over $8 billion from 2021 to 2025 as a result of Amazon prioritizing ad relevancy over selecting ads on bid price alone.\u201d<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4703980\/connecticut-sues-kalshi-block-sports-related-wagers\/\" data-type=\"link\" data-id=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4703980\/connecticut-sues-kalshi-block-sports-related-wagers\/\">CONNECTICUT SUES KALSHI TO BLOCK SPORTS-RELATED WAGERS<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">Monday\u2019s lawsuit is the latest action that the FTC has brought against Amazon.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The company is heading to trial in February 2027 as part of a sweeping federal <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/antitrust\/\" data-type=\"post_tag\" data-id=\"1187\">antitrust<\/a> case led by the FTC and 17 states. The plaintiffs in that case accuse the defendant of undermining competition by inflating prices and exerting its \u201cmonopoly power\u201d over third-party sellers.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTC and 22 states sue Amazon over hidden surcharges<\/p>\n","protected":false},"author":2159,"featured_media":2652525,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/AP26230751761751.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[13386,4558,6945,84940,32142],"class_list":["post-2652524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-advertising","tag-amazon","tag-ftc","tag-hidden-surcharges","tag-legal-action"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/AP26230751761751.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2159"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2652524"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652524\/revisions"}],"predecessor-version":[{"id":2652529,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652524\/revisions\/2652529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2652525"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2652524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2652524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2652524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}