Amazon Faces Billions in Penalties From Potential FTC Ad Suit

Amazon.com Inc. is facing a possible lawsuit from the US Federal Trade Commission that may lead to billions of dollars in civil penalties, over claims the e-commerce giant misled advertisers, according to people familiar with the matter.

The FTC, which enforces antitrust and consumer laws, has drafted a potential complaint against Amazon as part of an ongoing investigation by the regulator, said some of the people, who asked not to be named discussing a confidential matter. Multiple state attorneys general are also involved, the people said.

The federal agency may wrap up its investigation either through a lawsuit or settlement ...