Florida Joined Multi-State Amazon Lawsuit

The lawsuit alleges Amazon manipulated advertising auctions to artificially inflate costs for millions of businesses.

Updated on Sept. 18, 2026 in Advertising

Florida Joined Multi-State Amazon Lawsuit

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Florida Attorney General James Uthmeier has joined a multi-state lawsuit filed in the U.S. District Court for the Western District of Washington. The complaint alleges Amazon used hidden surcharges and fake participants to force advertisers to pay higher prices.

Why it matters

The litigation claims Amazon compromised the integrity of its second-price auction system to extract higher fees. Internal company documents reportedly reveal a strategy to bypass standard transparent pricing protocols.

The lawsuit claims a nationwide scheme extracted $20 billion from 1.2 million advertisers, including 500,000 small- to medium-sized businesses. Advertisers were found to be paying their maximum winning bid 80% of the time by 2024.

The players

James Uthmeier

He is the Attorney General of Florida who spearheaded the state joining the legal action against Amazon.

Amazon

The company is a multinational technology giant that dominates global e-commerce and digital advertising markets.

The details

Amazon allegedly led advertisers to believe they were participating in second-price auctions where the winner pays the runner-up price plus one cent. Instead, the suit claims the company introduced hidden surcharges and fake participants to ensure advertisers paid their absolute maximum bid.

Amazon reportedly tested hidden advertising surcharges during 2019 and 2020.
By 2024, advertisers were paying their maximum winning bid approximately 80% of the time.
The lawsuit filing was reported on September 18, 2026.

Market Landscape

This lawsuit reflects the ongoing industry shift toward greater regulatory oversight of digital advertising giants. It positions state attorneys general against Amazon in an effort to curb alleged monopolistic practices that have reshaped the competitive environment for small businesses.

Small business owners who rely on Amazon for digital advertising may see long-term changes in how bidding costs and auction fees are calculated. The outcome of the case could also influence the transparency requirements for other major advertising platforms.

The takeaway

Advertisers should remain cautious of platform-side auction mechanics that may lack full transparency. Monitoring changes to advertising billing statements is a prudent step for businesses managing tight marketing budgets.