GoKawiil
Tech News
A contributor to Entrepreneur outlines eight low-cost marketing strategies drawn from personal business experience and client work, arguing that tight budgets can push business owners toward more creative tactics. The first example details using auctions to sell inventory, citing Bidbus data showing auction prices rise 4.51% with two bidders and nearly 10% with five or more.
A federal lawsuit filed by the FTC alleges that Amazon secretly raised minimum price thresholds in some advertising auctions after bids were already submitted, effectively changing the rules mid-game. The suit claims this practice forced advertisers to pay more than they should have, generating billions in extra revenue for Amazon.
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.
The FTC and a bipartisan coalition of 22 states have sued Amazon, claiming it secretly manipulated its advertising auctions to charge advertisers more than they should have paid under the stated 'second price' bidding rules. The complaint alleges Amazon pocketed roughly $20 billion since 2019 by making Sponsored Products advertisers pay their full winning bid nearly 80% of the time instead of one cent above the next-highest bid. Amazon has called the lawsuit 'misguided' and denies misleading advertisers or consumers.
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.