Good morning. The Federal Trade Commission on Monday filed a lawsuit against Amazon.com alleging that the e-commerce giant manipulated prices businesses paid to advertise on its retail platform, reaping tens of billions of dollars for itself over seven years.

The lawsuit, joined by a bipartisan group of more than 20 state attorneys general, alleged that Amazon deceived advertisers by secretly raising the minimum price advertisers had to pay to place ads promoting their products.

Third major litigation: The case, filed in a Seattle federal court, becomes the consumer-protection agency's third major case against Amazon, which agreed to pay $2.5 billion last year to settle an earlier suit alleging it tricked people into signing up for its Prime service and made it hard to cancel the subscription. Another lawsuit alleging that Amazon engaged in illegal monopolization is headed for trial next year.

$20 billion losses: Advertisers allegedly suffered over $20 billion in harm by paying higher prices for ads, according to the complaint. The states, which have the authority to seek civil penalties, could attempt to claw some of that money back. States that joined the lawsuit include New York, California and Florida.

Boosting auction prices: Merchants compete to offer different types of ads that elevate the prominence of their brand every time a shopper searches for a product. The FTC alleged that Amazon began changing its auction strategy in 2018, seeking to raise prices on advertisers in a way they wouldn't notice.

Denial: Amazon said Monday that it properly described to advertisers how its auctions work. It said it made improvements to its ad technology over time that delivered more relevant ads to consumers and therefore improved the value of advertising to businesses that sell on its platform.

Also read: How Amazon's 'Secret' Ad Pricing System Worked, According to the FTC

Compliance

Ex-Congressman George Santos receives Kalshi's first-ever lifetime ban.

Kalshi said on Monday that it would ban former Republican Rep. George Santos from using its platform for life after a federal regulator alleged that the ex-congressman made more than $17,000 by placing bets on his attendance at President Trump's State of the Union address.

In addition to the ban, Kalshi said its compliance department had imposed a penalty of $71,356, according to a filing on its website. It marks the first time the company has issued a lifetime ban, according to a Kalshi spokeswoman.

Justice Department details alleged Walmart compliance failures in "pill mill" case.

The Justice Department said Walmart will pay $50 million to resolve allegations that the retailer's pharmacies dispensed dangerous prescriptions-and that its compliance team ignored employees reporting the practice, Risk Journal's Clara Hudson reports. (free link)

The department announced the settlement last week without initially providing specifics about the opioid deal. The government's newly-released complaint alleges that members of Walmart's compliance team knew that some of its prescribers were operating as "pill mills." The retailer is accused of helping to fuel the opioid crisis by failing to comply with the Controlled Substances Act when dispensing opioids.

Risk Journal reports: The Egyptian bank targeted by the U.S. over its alleged links to Iranian money laundering is conducting "business as usual" in the United Arab Emirates, according to regulators in the region. (free link)

Los Angeles County sued State Farm Monday over its handling of insurance claims after the deadly and destructive 2025 wildfires, alleging that delays and denials of claims by California's largest private insurer violated unfair competition laws.

The European Union said OpenAI's ChatGPT, Reddit and Roblox should be held to a higher standard of scrutiny under the bloc's Digital Services Act as Brussels seeks to mitigate potential risks from their services and algorithmic systems for millions of users.

Australia's financial intelligence regulator began issuing legal requests to businesses to determine whether they are complying with the country's new anti-money-laundering laws, Risk Journal reports. (free link)

China was the second most common destination for goods issued with U.K. export licenses in 2025, trailing just behind the U.S., Risk Journal's Anwar Faruqi reports. (free link)

A Russian resident of Florida has been convicted of illegally exporting aircraft parts from the U.S. to Russia for the state-owned airline, Aeroflot, Risk Journal reports. (free link)

The number of barrels drawn out of the U.S. Strategic Petroleum Reserve last week, bringing the federal inventory of crude oil to its lowest since the autumn of 1982.

Risk

G-20 warned of growing threat to financial stability posed by new AI models.

New artificial-intelligence models pose a growing threat to the stability of the global financial system and measures to ensure their safe release should be a priority, the head of the G20's Financial Stability Board wrote in a letter to regulators from the world's leading economies Monday.

Addressed to central bank governors and treasury chiefs from the Group of 20 largest economies, the letter from Andrew Bailey follows a series of incidents over recent months in which new models from companies including OpenAI, Anthropic and Meta Platforms have used the internet to hack other organizations. Regulators worry that new models could find previously unidentified gaps in the cybersecurity systems of financial institutions, and quickly adapt to circumvent new fixes.

Russia turns to new-generation drones and all-day attacks to wear down Ukrainians.

Russia is trying to pound Ukraine's capital into submission by using its growing fleet of jet-powered drones for nearly continuous attacks, combining improved weaponry with new tactics.

Jet-powered Geran drones, an evolution of the Iranian Shahed model, are stretching Ukraine's air defenses with their speed. Since last Thursday, piecemeal Russian airstrikes around the clock have replaced periodic massive barrages at night.

The Geopolitical Mismatch Driving Russia to Threaten the West

The Venezuelan oil company run by businessman Alejandro Betancourt plans to dispatch more than 50 drilling rigs to the Latin American country over the next few years, a massive rollout meant to turbocharge the country's anemic crude production.

Iceland's rejection of European Union membership talks is a blow to the bloc's effort to position itself as a geopolitical counterweight to President Trump's high-pressure tactics.

Treasury Secretary Scott Bessent blamed Canadian Prime Minister Mark Carney for the collapse of trade talks this month aimed at averting steep U.S. tariffs on Canadian goods, and brushed off concerns about a trade war with America's second-largest trading partner.

President Trump warned Monday that communities that don't embrace data centers will "end up being backwards and poor," putting himself at odds with most Americans who say they don't want the facilities that power AI to be built near them.

Treasury Secretary Scott Bessent said he is not going to speculate on what the Federal Reserve might do at its September interest rate meeting. But he did list a few reasons holding rates in place might make sense.

Not too long ago, companies were doling out bonuses to encourage AI use. Now, at least one major firm is rewarding employees who demonstrate the very human skills needed to ensure all that AI use makes a difference.

Profits are booming at America's biggest companies-and their leaders say that likely won't change soon.

You can add party balloons to the list of goods and products that have been disrupted by the Iran war. Dollar-store chain Dollar Tree said late last week that an ongoing helium shortage caused by the conflict has hit its party-supplies business, as it's become more difficult and expensive to get the gas required to fill balloons. Executives said the shortage cost Dollar Tree about $15 million in sales during the second quarter.

A hedge-fund titan's divorce is putting Wall Street's staggering wealth on public view.

Dow Jones Global Horizons

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What Else Matters

The Supreme Court is allowing President Trump to keep building a White House ballroom without congressional approval, clearing the way for construction crews to continue their nearly round-the-clock work to complete one of the president's prized projects.

The investment fund 1789 Capital, in which Donald Trump Jr. is a partner, is investing around $300 million into Polymarket, according to a person familiar with the matter.

At least two people died in the Grand Canyon and over a dozen were still unaccounted for after a weekend of punishing rain flooded portions of the Arizona park.

Army Secretary Dan Driscoll has submitted his resignation to President Trump following months of tension with Defense Secretary Pete Hegseth over the direction of the service and the ouster of numerous senior Army officers.

Apple is on top of the world. That may be John Ternus's biggest challenge, but also his largest opportunity.

About Us

Follow us on LinkedIn. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Clara Hudson at clara.hudson@wsj.com, Yusuf Khan at yusuf.khan@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.