Amanze Chinonye
The U.S. Federal Trade Commission (FTC) and attorneys general from 22 states sued Amazon on Monday, accusing the e-commerce giant of secretly manipulating its digital advertising auctions and overcharging about 1.2 million customers by more than $20 billion.
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The lawsuit, filed in the U.S. District Court for the Western District of Washington, centres on Amazon’s Sponsored Products, Sponsored Brands and Sponsored Display services.
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Regulators allege that Amazon began altering its advertising auctions in 2018 without informing customers and used undisclosed surcharges and other mechanisms to raise prices beyond what the auction process would otherwise have produced.
The FTC said the alleged practices affected more than 500,000 small and medium-sized businesses. Its investigation included a review of more than one million internal Amazon documents.
California Attorney General Rob Bonta accused Amazon of rigging advertising auctions involving billions of dollars, describing the case as a bipartisan effort between federal and state regulators.
Amazon denied the allegations, calling the lawsuit “misguided” and “flawed”. The company said regulators had selectively relied on outdated internal documents and misrepresented how its advertising system operates.
Amazon said its auctions consider factors including the relevance of an advertisement to a shopper’s search rather than simply selecting the highest bidder. It also disputed claims that its system systematically increased advertising costs, saying advertising performance had improved while average cost-per-click remained broadly stable.
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In September 2025, Amazon agreed to pay $2.5 billion to settle FTC allegations that it used deceptive practices to enrol consumers in its Prime subscription service and made cancellation difficult.
The company is also defending a separate antitrust lawsuit brought by the FTC and several states alleging that it unlawfully maintained a monopoly in online retail. A trial is scheduled for next year.
The latest case could result in financial penalties and other remedies if regulators prevail. The allegations are yet to be proven in court.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
