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.