The Federal Trade Commission and 22 states have placed previously redacted allegations about Amazon’s advertising auctions into the public record, adding detail to a case pending in the Western District of Washington.
The updated complaint alleges that Amazon secretly charged advertisers above the price produced by its search-ad auction. According to the pleading, the increases reached 50 per cent on ordinary days and 250 per cent around major shopping events. The plaintiffs say the change lifted average cost per click by 20 per cent during the 2021 holiday season and generated an additional $87 million in worldwide revenue during the 2022 holidays.
Advertisers were not told that a surcharge had been introduced, the complaint says. When one advertiser asked whether Amazon had changed its second-price auction, an account manager attributed higher costs to increased competition. The filing also alleges that executives used the mechanism to close revenue gaps, including a $40 million target discussed in 2023.
These are allegations, not findings. Amazon has not been held liable, and the litigation remains pending. The FTC and the participating attorneys general seek injunctive and monetary relief. The FTC’s release links to the unredacted complaint and case record.
