FTC and 22 States Sue Amazon Over Alleged Hidden Ad Auction Surcharges Exceeding $20 Billion
The FTC and 22 state attorneys general filed suit against Amazon on August 31, 2026, alleging the company secretly inflated prices in its Sponsored Products, Sponsored Brands, and Display Ads auctions through undisclosed reserve-pricing systems introduced between 2018 and 2023, affecting more than 1.2 million U.S. advertising customers. The complaint alleges Amazon misrepresented its auctions as second-price while increasingly charging advertisers closer to their own bids, with states estimating overcharges exceeding $20 billion since 2019. Amazon disputes the claims, saying inflation-adjusted cost per click held flat from 2019 through 2024 and that advertisers saved over $8 billion during that period.