GoKawiilFTC and 22 states sue Amazon over hidden ad auction surcharges
The Federal Trade Commission, joined by attorneys general from 22 states, has filed suit against Amazon alleging it secretly altered its ad auction system starting in 2019 to charge advertisers more than they were told. The complaint claims Amazon added an undisclosed 'soft reserve price' and even used a fictitious bidder to drive up costs, despite marketing its system as a fair second-price auction. Regulators estimate the practice may have extracted over $20 billion from advertisers since 2019.
GoKawiil's interpretation of the reporting above, not reported fact.
Amazon's ad business is now the third-largest in digital advertising worldwide, so allegations of rigged pricing strike at a major and fast-growing revenue stream. Higher ad costs for third-party sellers often get passed on to shoppers, meaning the case touches both marketplace fairness and consumer prices. It also adds to mounting antitrust and consumer-protection pressure on Amazon following seller boycotts over rising advertising fees.
- FTC and 22 state AGs accuse Amazon of secretly changing ad auction rules since 2019
- Amazon allegedly added a hidden 'soft reserve price' and used a fake bidder to raise costs
- Advertisers may have overpaid more than $20 billion, with costs likely passed to consumers
Source: yro.slashdot.org, 2026-08-31
Published there as: “FTC Sues Amazon, Accusing the E-Commerce Giant of Misleading Advertisers”
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