The U.S. Federal Trade Commission (FTC) is preparing a lawsuit against Amazon that could result in billions of dollars in civil penalties. Sources familiar with the matter state the FTC has drafted a complaint following an investigation into allegations the company misled advertisers. Multiple state attorneys general are also participating in the action.
Regulators are investigating whether Amazon properly disclosed terms and pricing for its sponsored listings. The probe specifically examines Amazon's ad auctions and transparency regarding reserve pricing, which sets minimum thresholds for advertisers.
A lawsuit or settlement could be finalized as early as this summer. This potential action follows an existing antitrust lawsuit against Amazon scheduled for trial in early 2027.