Tuesday, 1 September, 2026
Ad-Rigging Allegations: FTC and 22 States Sue Amazon Over $20 Billion Surcharge Scheme
By TechShots Studio
The US Federal Trade Commission and 22 state attorneys general have sued Amazon, alleging it secretly manipulated its digital ad auctions to extract over $20 billion in inflated fees from 1.2 million advertisers. Regulators claim Amazon covertly used "soft reserve prices" and dummy bids to effectively convert "second-price" auctions into maximum-bid charges. Amazon rejected the claims, calling the lawsuit misguided and misinformed about ad dynamics.