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Sep 4, 2026 · Archive
Business

FTC, 22 States Sue Amazon Over Seven Years Of Hidden Ad Fees

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