FTC SUES AMAZON, ACCUSING THE E-COMMERCE GIANT OF MISLEADING ADVERTISERS

Summary from the TLDR Marketing newsletter

The FTC and 22 state attorneys general sued Amazon on Monday, alleging it secretly overcharged advertisers by more than $20 billion through hidden auction surcharges dating back to a 2019 rule change. Amazon had told advertisers its second-price auction system only charged the minimum bid needed to win, but the FTC says Amazon quietly added an undisclosed "soft reserve price" that pushed costs higher. Amazon calls the lawsuit misguided and says its auction system saved advertisers $8 billion between 2021 and 2025, with a trial set to test which version holds up.