The Federal Trade Commission, joined by more than 20 state attorneys general, sued Amazon in Seattle federal court, alleging the e-commerce giant deceived advertisers by secretly raising minimum ad prices and reaping tens of billions of dollars over seven years. The complaint says Amazon used a “soft reserve” bid to inflate costs, raising pay‑per‑click rates by up to 50% on major shopping days and ultimately passing higher prices to consumers. Amazon, which earned $68 billion from ads in 2025, calls its practices standard industry tactics and says it properly disclosed auction mechanics. The lawsuit follows a $2.5 billion settlement over Prime enrollment issues and another antitrust case slated for trial next year. States such as New York, California and Florida could seek civil penalties, while the FTC’s action continues broader government efforts to curb monopolistic behavior in digital advertising.

The case is the third major consumer‑protection suit against Amazon in recent years, adding pressure on the company as it defends its ad‑platform strategy. Amazon maintains that its real‑time minimum value setting benefits both shoppers and merchants by delivering more relevant ads. The outcome may influence how major ad platforms like Google and Meta structure their auctions and could set new precedents for competition enforcement in e‑commerce advertising.

Key figures include the $68 billion ad revenue, the $20 billion alleged harm to advertisers, and the 70‑80% rate at which Amazon reportedly intervened in auctions. The lawsuit underscores the growing scrutiny of big tech’s control over digital advertising markets.