FTC May Sue Amazon (AMZN) Over Misleading Ad Practices

The U.S. Federal Trade Commission (FTC) may file a lawsuit against Amazon (AMZN-US) over allegations its advertising business misled advertisers, Bloomberg reported on June 16, 2026, citing informed sources. The investigation, which is in its late stages and includes several state attorneys general, could result in civil penalties for the e-commerce and cloud giant. The FTC's probe focuses on whether Amazon provided incomplete or misleading information regarding ad terms, pricing structures, and its ad auction system, specifically the "reserve pricing" mechanism where advertisers must meet a minimum bid. The agency is evaluating whether to formally file a complaint or seek a settlement by Summer 2026. This potential legal action follows Amazon's $2.5 billion settlement with the FTC in September 2025 over claims of deceptive Prime membership enrollment and cancellation practices. Increased regulatory scrutiny on its fast-growing digital advertising segment could raise compliance costs and potentially impact future profitability.