GoKawiilFTC and 22 states sue Amazon over alleged hidden ad price markups
The FTC, joined by attorneys general from 22 states, filed a lawsuit accusing Amazon of quietly inflating prices in its ad auctions since 2019. Instead of letting the winning bidder pay one cent above the second-highest bid as its auction system promises, the complaint alleges Amazon substituted a higher, internally calculated 'proxy' price to boost its own profits. Regulators estimate this scheme extracted more than $20 billion from advertisers, costs they say were largely pushed onto consumers—an allegation Amazon disputes, calling the suit misguided.
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This marks another major regulatory challenge for Amazon following its $2.5 billion Prime settlement last year, signaling sustained federal and state scrutiny of its core business practices. If proven, the allegations could reshape how digital ad auctions are audited for transparency and reinforce arguments that Amazon's marketplace dominance lets it quietly reprice services without market checks.
- FTC and 22 states allege Amazon secretly overcharged advertisers by replacing real auction prices with an inflated internal calculation.
- The complaint claims the scheme dates back to 2019 and may have extracted over $20 billion from advertisers.
- Amazon denies the allegations, citing falling average ad bid prices and disputing that costs were passed to consumers.
Source: theverge.com — Stevie Bonifield, 2026-08-31
Published there as: “FTC lawsuit alleges Amazon has been ‘secretly and systematically’ overcharging for ads”
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