GoKawiilFTC and 22 states sue Amazon over hidden ad auction surcharges
The Federal Trade Commission, joined by 22 states, filed suit against Amazon on Monday alleging the company secretly inflated prices in its Sponsored Products, Sponsored Brands and Display ad auctions for more than seven years. The complaint says Amazon told over 500,000 small and medium businesses they'd pay just a penny above the next-highest bid in a 'second-price' auction, but from 2019 quietly inserted a hidden 'soft reserve price' using a fabricated bidder to push winning advertisers to pay their full bid instead.