The Federal Trade Commission sued Amazon on Monday, alleging the company misled advertisers about how its sponsored ads pricing and auction systems worked, according to CNBC. CNBC says Amazon confirmed the lawsuit. The case centers on Amazon’s advertising marketplace, where advertisers pay to promote products through sponsored ads. CNBC reports that the FTC’s complaint alleges advertisers were harmed by what it describes as a company-wide effort to deceive them. One cited element of the complaint, according to CNBC, is a change Amazon made in 2018 to its auction strategy. The provided report does not include Amazon’s substantive response to the allegations, beyond confirming the lawsuit. CNBC also reports, citing The Wall Street Journal, that more than 20 state attorneys general joined the complaint. The Wall Street Journal first reported the lawsuit, according to CNBC. The story is still developing. CNBC characterized the item as breaking news, and the current public summary does not yet provide the full complaint, requested remedies, or Amazon’s legal defense. Who benefits: Advertisers could benefit if the case produces more transparency or changes to sponsored ads auction practices. Regulators gain another major platform case to test claims around marketplace pricing systems. Who's exposed: Amazon is exposed to litigation from the FTC and, according to CNBC’s report citing The Wall Street Journal, more than 20 state attorneys general. Advertisers that rely on Amazon sponsored ads are exposed to uncertainty while the case develops.