The Federal Trade Commission plans to sue Amazon ($AMZN) over allegations that the company secretly raised prices paid by businesses advertising on its marketplace, according to The Wall Street Journal and Bloomberg. More than 20 state attorneys general are expected to join the lawsuit, which could be filed Monday.
- The FTC is expected to allege Amazon deceived advertisers by raising minimum ad prices through undisclosed bids known as “soft reserves.”
- FTC officials told the Journal that Amazon began the practice in 2018 and has recently intervened to raise minimum prices in 70% to 80% of auctions.
- The agency alleges the practice increased pay-per-click costs by as much as 50% on major shopping days and caused billions of dollars in advertiser harm.
- Amazon denied the allegations, saying investigators misrepresented its auctions and presented no evidence of consumer harm.
- Amazon generated $68 billion in advertising revenue in 2025.
Relevant Companies
- Amazon ($AMZN) - Faces the planned federal and state enforcement action over its advertising practices.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
