FTC accuses Amazon of covert ad surcharges in auction pricing

The FTC and 22 states filed a lawsuit against Amazon, alleging the company secretly added undisclosed 'soft reserve prices' to its ad auctions since 2019, inflating costs for more than 1 million advertisers (including over 500,000 SMBs) and potentially generating tens of billions in extra revenue. Amazon disputes the claims, saying its auctions are second-price with ad relevance, and there is no established claims process for advertisers yet. The case seeks monetary relief and is proceeding in U.S. District Court for the Western District of Washington.