Amazon Faces Potential FTC Lawsuit Over Misleading Ad Practices on Tuesday

According to Bloomberg on Tuesday (June 16), Amazon could face a lawsuit from the U.S. Federal Trade Commission (FTC) over potentially misleading advertising practices toward advertisers. The FTC's consumer protection division is in the late stage of its investigation, which also involves multiple state attorneys general offices. The regulator is examining whether Amazon adequately disclosed advertising terms, pricing mechanisms, and fee structures, particularly the "reserve pricing" system used in search ads—the minimum bid threshold advertisers must accept. The FTC could conclude its investigation as soon as summer 2026 through either formal litigation or settlement.
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