Feds and 22 states sue Amazon, alleging deceptive advertising scheme

By: Alex Brown

Outlets: Stateline

Published: August 31, 2026

Words: 452

Last Updated: 1 month, 2 weeks ago

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The Federal Trade Commission and attorneys general from 22 states sued Amazon Monday, claiming the online retail company used artificial bids to inflate costs for advertisers, bringing in tens of billions of dollars.

The complaint alleges that Amazon used an “invented auction participant” to drive up prices for advertising placements and sponsored product spots on its online store. The lawsuit quotes a former company employee who said the system allowed the company to charge prices …

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