FTC, 22 States Sue Amazon Over Seven Years Of Hidden Ad Fees
Amazon told advertisers they ran a second-price auction, then charged the winning bid itself roughly 80% of the time by 2024.
- Filed August 31, 2026 in Seattle federal court by the FTC and 22 state attorneys general.
- Internal memos labeled the surcharge a 'soft reserve price' and an 'invented auction participant.'
- The suit says the scheme drained tens of billions of dollars from over 500,000 small businesses.
Why it matters: A company that privately calls its overcharge a 'soft reserve price' already knew the price was fake.
FTC press release: FTC, States Sue Amazon Over Secret Ad Surcharge Scheme ↗ · Sep 4, 20269/4/26