- The FTC alleges Amazon secretly changed its ad-auction rules in 2019 by adding an undisclosed “soft reserve price,” increasing prices for sponsored-products, brands and display ads.
- The agency and 22 state attorneys general seek civil penalties, restitution and other damages under federal and state consumer-protection laws.
- Amazon rejects the suit as misguided, says the complaint misunderstands advertiser behavior, and states its auction systems saved advertisers $8 billion from 2021 through 2025.
- The suit adds to Amazon’s existing FTC exposure, including a separate antitrust case scheduled for trial next year.
Quotes
“Amazon has millions of advertising customers who were misled into paying significantly higher prices.”
“The company said its auction systems have saved advertisers $8 billion between 2021 and 2025, not cost them extra.”