Topline
The Federal Trade Commission filed a major lawsuit against Amazon on Monday, accusing the e-commerce giant of using deceptive prices for advertisers.
The Amazon logo is displayed on a sign outside of a distribution center on May 3, 2025 in San Diego, California.
Photo by Kevin Carter/Getty Images
Key Facts
The lawsuit, which was first reported by the Wall Street Journal, alleges Amazon secretly raised the minimum price advertisers had to pay to place ads for their products.
The lawsuit involves over 20 state attorney generals and covers a seven-year window in which Amazon generated tens of billions of dollars.
Amazon shares tumbled after the report was published and were down 2.7% around 3:40 p.m. EDT, falling below the $260 mark.
Forbes has reached out to the FTC and Amazon for comment.
Big Number
Over $20 billion. That is how much money the FTC has accused Amazon of illegally gaining from “unwitting advertising customers.â€
What To Watch For
It is unclear how much money in damages the FTC and states attorneys general are seeking from Amazon. Pennsylvania Attorney General Dave Sunday said in a statement his office is “hopeful†the lawsuit will provide restitution payments to the businesses Amazon allegedly deceived.
What States Are Involved In The Lawsuit?
Attorneys general from Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington have joined the lawsuit. Of the attorneys general involved, 11 are Republican and 10 are Democrats.
Key Background
Monday's legal action against Amazon comes just two weeks after the e-commerce giant settled allegations for $2.2 million that it violated the Fair Credit Reporting Act. Prosecutors accused Amazon of failing to provide identity theft victims with request transaction records involving alleged perpetrators of the theft. Less than a year ago, Amazon logged its largest settlement of all time, agreeing to fork over $2.5 billion after the FTC accused it of using deceptive methods to sign people up for Prime subscriptions, as well as allegedly making it difficult to cancel the digital plans. Amazon agreed to pay a $1 billion civil penalty and $1.5 billion in refunds back to consumers.
Further Reading
Amazon Reaches Record $2.5 Billion Settlement With FTC Over ‘Deceptive' Prime Tactics (Forbes)
