Amazon could face billions in fines as the FTC eyes its ad business

Amazon’s advertising business has become its quiet money machine. It may also be its next big regulatory headache.

The US Federal Trade Commission has drafted a potential complaint accusing Amazon of misleading advertisers, a case that could lead to billions of dollars in civil penalties, Bloomberg reported on 16 June, citing people familiar with the matter.

The investigation centres on whether Amazon properly disclosed the terms and pricing of its ads, the ‘sponsored listings’ that sit at the top of search results when you look for a product.

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The specific concern is ‘reserve pricing’, the price floors advertisers have to clear before they can win an ad slot. If those floors are hidden, an advertiser who misses one might simply raise their bid, effectively bidding against nothing to reach a level only Amazon can see.

It is a technical point with a simple result, more ad spend flowing to Amazon. The regulator is examining Google over similar auction concerns.

Here is the part that turns a probe into a billion-dollar risk. The FTC’s own ability to extract cash penalties is limited, but Bloomberg reports that multiple state attorneys general are involved.

State consumer-protection laws allow fines of tens of thousands of dollars per violation, per day. Multiplied across the sheer number of ads Amazon serves, those figures climb fast, which is how the ‘billions’ estimate is reached.

The agency could wrap up the matter as soon as this summer, by lawsuit or settlement, though its two Republican commissioners, Andrew Ferguson and Mark Meador, would have to vote first.

The target is no accident. Advertising brought Amazon $68.6bn in 2025, according to a company filing, making it the third-largest online ad seller behind Google, and one of its fastest-growing lines of business.

It also lands on a company the FTC has been circling since at least 2019. Last autumn Amazon agreed to pay $2.5bn to settle claims it tricked people into Prime subscriptions, and a separate antitrust trial, over claims it pushed brands to raise prices at rival retailers, is set for early 2027.

With expertise in digital marketing, product management, and branding & identity, Ana Maria Constantin develops strategies that resonate (show all) With expertise in digital marketing, product management, and branding & identity, Ana Maria Constantin develops strategies that resonate with our target audience in the software/SaaS industry. Collaboration and teamwork are paramount to he