Static Bulletin

FTC sues Amazon over alleged hidden advertising surcharge

The FTC and 22 state attorneys general allege Amazon secretly altered its advertising auctions since 2019, charging businesses more than genuine competition would have produced and potentially extracting over $20 billion. TechCrunch detailed allegations that Amazon used a hidden reserve price and charged Sponsored Products advertisers their full winning bid nearly 80% of the time, while The Verge emphasized claims that the costs were passed to consumers. Amazon called the lawsuit misguided, disputed the FTC’s interpretation of its auctions and said average Sponsored Products winning bids fell 50% from 2019 to 2024.