FTC and States Unseal Amazon Ads Auction Complaint

Updated Complaint Reveals Alleged Pricing Scheme

The Federal Trade Commission and a group of state attorneys general said they have filed an updated complaint that includes previously redacted information about Amazon’s online search advertising auction.

According to the agency, the complaint alleges that Amazon used deceptive practices to secretly raise the cost of advertising on its platform, especially during high‑traffic shopping periods.

Impact on Advertisers

The FTC said the alleged scheme caused substantial harm to advertisers, noting that both small businesses and large, sophisticated customers faced higher charges.

One large food and beverage advertiser was described as having experienced a dramatic increase in advertising costs during a major shopping event, which the company internally acknowledged reduced the advertiser’s return on ad spend and hurt campaign performance.

Internal Communications and Revenue Goals

The complaint cites internal Amazon communications in which executives discussed the need to generate additional revenue to meet corporate financial targets.

The head of Amazon Ads reportedly told a senior vice president that aggressive measures were being considered to close revenue gaps, indicating that the hidden surcharges were used to meet those goals.

Misleading Statements to Advertisers

The FTC said that when advertisers asked whether changes to the auction process had caused price spikes, an Amazon account manager falsely reassured them that the increases were due to heightened competition rather than any alteration to the auction system.

The agency highlighted that such misleading statements were part of a broader effort to conceal the true cause of the inflated costs.

Why It Matters

The unsealed complaint, the FTC noted, provides a clearer view of how the alleged practices could distort the advertising marketplace and disadvantage businesses that rely on Amazon’s platform for reaching customers.

By bringing these details to public view, the FTC and the participating states aim to enforce fair competition standards and protect advertisers from hidden fees that could undermine their marketing investments.