The FTC and attorneys general from 22 states filed suit against Amazon, alleging the company secretly altered its ad-auction pricing after bids closed, extracting over $20 billion in extra charges from roughly 1.2 million advertisers since 2018. The complaint centers on a 'soft reserve' mechanism that reportedly raised final prices on Sponsored Products, Sponsored Brands, and Sponsored Display placements beyond the standard second-price model, with heavier markups during peak shopping periods like the holidays. Amazon has rejected the allegations, saying the government misunderstands how advertisers set bidding strategy.
techspot.com
· 2026-09-02
The FTC and attorneys general from 22 states filed suit against Amazon, alleging the company has secretly overridden its own advertising auction results since 2019 to charge higher prices than advertisers actually won. The complaint says internal documents show Amazon applied hidden surcharges to Sponsored Products, Sponsored Brands, and Sponsored Display ads, extracting more than $20 billion from roughly 1.2 million advertisers.
arstechnica.com
· 2026-09-01
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.
yro.slashdot.org
· 2026-08-31
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.
engadget.com
· 2026-08-31
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.
techcrunch.com
· 2026-08-31
The Federal Trade Commission, joined by 22 state attorneys general, filed suit against Amazon alleging it covertly altered its ad auction rules starting in 2019 to overcharge advertisers by more than $20 billion. The complaint targets Amazon's sponsored products, brand, and display ads, claiming the company misrepresented its 'second-price' auction system while quietly adding surcharges. Amazon has rejected the allegations, calling the lawsuit misguided and saying its auction changes actually saved advertisers billions.
cnbc.com
· 2026-08-31
GoKawiil