American Economic Liberties Project Stands with Amazon Sellers Boycotting Platform’s Ad Business Today
Washington, D.C. — This week, as hundreds of Amazon sellers launched a coordinated ad boycott protesting new fees, delayed payments, and a policy change that deducts ad spend directly from seller proceeds, the American Economic Liberties Project released the following statement.
“In 2023, Lina Khan’s FTC and 18 states filed a case against Amazon. That litigation is now in the hands of the Trump FTC, and is scheduled for trial in spring 2027. The boycott this week is an on-the-ground illustration of those exact dynamics.”
There are multiple antitrust actions against the e-commerce giant.
- The FTC and 17 state attorneys general filed an antitrust case against Amazon in September 2023, alleging the company illegally maintains its monopoly through forced advertising, punitive fee structures, and anti-discounting measures that trap sellers on the platform. A separate case on Prime’s deceptive subscription patterns recently settled for $2.5 billion, but with no admission of wrongdoing or executive accountability.
- California Attorney General Rob Bonta filed a case against the company.
- The D.C. Attorney General has an ongoing case.
- Private class action cases are in the works, with one filed last year as one of the largest consumer antitrust class actions in U.S. history.
Just as with Live Nation, the states are the last line of defense for the independent businesses Amazon is squeezing.
We applaud California Attorney General Rob Bonta for bringing his own case against the company, and encourage the state to strengthen its antitrust law.
A community of more than 800 founders representing nearly $15 billion in annual Amazon revenue organized the action after Amazon announced in early April that beginning April 15, advertising costs would be deducted directly from seller retail proceeds, with credit cards used only as a backup. This change eliminates one of the only remaining cash flow cushions small sellers had on the platform, and compounds the impact of delayed payments and a recent 3.5% “fuel and logistics-related surcharge” for sellers using Amazon’s fulfillment centers.
Learn more about Economic Liberties’ work on Amazon here.
Learn more about Economic Liberties here.