Florida's Attorney General, James Uthmeier, revealed on Wednesday that the state has initiated a lawsuit against Amazon over alleged hidden charges on its advertising platform. These fees reportedly generated billions for the company while subtly passing on those costs to consumers' final prices.
Joining forces with the Federal Trade Commission (FTC) and 21 other states, Florida has become part of the legal battle against the tech behemoth, the Attorney General's office confirmed.
The lawsuit claims that for more than four years, Amazon misled businesses purchasing Sponsored Products ads. The company presented its system as a "second-price" auction, where the winning bidder would pay just a cent more than the second-highest offer.
However, the plaintiffs argue that Amazon had actually inserted an undisclosed surcharge, increasing the amount advertisers had to pay. By 2024, the lawsuit asserts, approximately 80% of the auctions charged the winning bidder the full amount of their own bid.
Prosecutors allege that the company began testing this mechanism in 2019 and 2020, later expanding its use. They even reportedly hiked the surcharges during major sales events like Prime Day and Black Friday.
"Amazon's internal emails show they knew it was misleading, yet they proceeded anyway. Even after being warned by investigators, they continued," stated Uthmeier.
The economic impact is significant, according to the Florida Attorney General's office. The system allegedly resulted in over $20 billion in additional charges to about 1.2 million advertising clients across the U.S., including over 500,000 small and medium-sized businesses.
In Florida alone, sellers and merchants are said to have paid hundreds of millions of dollars more.
The lawsuit further contends that these costs were partly passed on to consumers, leading to higher prices for food, medicine, clothing, school supplies, and other everyday necessities.
Uthmeier remarked, "Amazon told Florida businesses they were participating in a fair auction. That was false. Amazon hid a surcharge, padded its own profits, and these costs fell on Florida families buying food, medicine, and essentials."
Florida accuses the company of violating the state's Deceptive and Unfair Trade Practices Act, seeking a permanent injunction, restitution, disgorgement of profits obtained through the questioned practices, and civil penalties.
Amazon has denied the allegations, calling the case "wrong." The company claims its pricing mechanisms saved advertisers about $8 billion from 2021 to 2025 and denies that the cost per click increased during that period.
This lawsuit adds to Amazon's ongoing clashes with U.S. regulators. In 2025, the company reached a $2.5 billion agreement with the FTC concerning Amazon Prime subscriptions.
Uthmeier concluded his announcement with a stern warning: "If you rig the game and hand the bill to Florida families, we will hold you accountable."
Legal and Economic Implications of Amazon's Hidden Fees
What are the allegations against Amazon in Florida's lawsuit?
Florida alleges that Amazon implemented undisclosed surcharges on its advertising platform, misleading businesses and inflating consumer prices for essential goods.
How did Amazon reportedly benefit from these hidden fees?
The hidden fees allegedly generated over $20 billion in additional charges for Amazon, affecting around 1.2 million advertising clients in the United States.
What impact did these fees have on Florida consumers?
The costs were reportedly passed onto consumers, resulting in higher prices for food, medicine, clothing, and other everyday items.