GoKawiilFTC and 22 states sue Amazon over hidden ad-auction surcharges since 2019
The FTC and 22 state attorneys general have filed a lawsuit accusing Amazon of concealing surcharges within its advertising auctions for more than six years, allegedly extracting over $20 billion from advertisers who didn't know they were paying inflated rates. Internal documents cited in the suit reportedly show employees flagged the pricing tactic as risky for long-term trust even as it boosted short-term revenue. Amazon has pushed back, saying the suit misrepresents its ad auction mechanics and lacks evidence that consumers paid more as a result.