Sep. 1 at 2:15 AM
The FTC sued Amazon, alleging the e-commerce giant misled advertisers and systematically overcharged them by manipulating its advertising pricing and auction systems. The lawsuit, joined by 22 state attorneys general, claims Amazon may have collected more than
$20 billion in hidden surcharges since changing its auction rules in 2019.
The FTC alleges Amazon secretly introduced a “soft reserve price” that raised advertising costs without informing customers. The agency said the company’s sponsored-product, brand and display advertising systems were designed to generate more revenue, with internal communications cited as evidence.
Amazon called the lawsuit “misguided”, arguing that the FTC misunderstands how its advertising auctions work and has provided no evidence that the alleged practices increased consumer prices. The company said its auction systems actually saved advertisers about
$8 billion between 2021 and 2025 and that it plans to defend itself in court.
$AMZN