FTC and State Attorneys General Sue Amazon Over Alleged Secret Ad Surcharge Scheme
The Federal Trade Commission and 22 state attorneys general have filed a lawsuit against Amazon, alleging the company operated a secret ad surcharge scheme.
Portland, OR, September 1, 2026 — The Federal Trade Commission (FTC) has joined forces with 22 state attorneys general to file a lawsuit against e-commerce giant Amazon. The lawsuit centers on allegations that the company engaged in a secret advertising surcharge scheme.
Details regarding the specifics of this alleged scheme, including the timeline of its operation, the exact nature of the surcharges, and the amounts involved, were not immediately provided in the initial filings. The complaint, lodged by the federal agency and a coalition of state legal officials, claims that Amazon has been misleading sellers and consumers through its advertising practices. The core of the allegation points to a hidden method by which Amazon allegedly increased costs for businesses advertising on its platform, with these costs potentially being passed on to consumers.
The FTC, which is tasked with protecting consumers and promoting competition, typically investigates practices that may harm market fairness or deceive the public. The involvement of attorneys general from 22 states indicates a broad concern among state consumer protection agencies regarding Amazon’s alleged conduct.
The lawsuit is expected to scrutinize Amazon’s role not only as a marketplace for third-party sellers but also as an advertising platform. Companies that sell products on Amazon often rely on the platform’s advertising services to gain visibility. The alleged “secret ad surcharge scheme” suggests that Amazon may have implemented fees or cost increases related to advertising that were not transparently disclosed, potentially violating consumer protection laws and antitrust principles.
Further details about the specific legal claims, the evidence presented, and the remedies sought by the FTC and the state attorneys general are anticipated as the legal proceedings unfold. The contractor’s name involved in the alleged scheme was not provided. The outcome of this lawsuit could have significant implications for how online marketplaces operate their advertising services and how they disclose costs to businesses and consumers.
Story summarized from the original created by Claudia Dimuro on www.oregonlive.com, see more information here.
