FTC and 22 States Sue Amazon Over $20 Billion Ad Price Inflation
TLDR
- The FTC and 22 states filed a federal lawsuit against Amazon on Monday over allegedly inflated advertising prices
- Amazon is accused of secretly raising minimum ad prices in online auctions, affecting 1.2 million advertisers
- The FTC alleges advertisers were overcharged by $20 billion or more since 2019 rule changes
- Amazon intervened in up to 80% of sponsored product ad auctions, according to the complaint
- The FTC is seeking “tens of billions” in damages; Amazon denies all wrongdoing
The FTC and a bipartisan group of 22 states took Amazon to federal court on Monday, claiming the company ran a years-long scheme to secretly inflate advertising prices for more than a million businesses.
FTC & 22 STATES TO SUE $AMZN OVER ALLEGED SECRET AD PRICE HIKES
The FTC is expected to allege Amazon manipulated its ad auctions by inserting its own “soft reserve” bid above the runner-up bid, effectively raising the minimum price advertisers had to pay.
The practice… pic.twitter.com/ffXicNdmxx
- Wall St Engine (@wallstengine) August 31, 2026
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