GoKawiilFTC and 22 states sue Amazon over alleged ad auction price rigging
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.