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Amazon sued by FTC and 22 states over alleged ad auction manipulation
The U.S. Federal Trade Commission (FTC) and a bipartisan group of 22 state attorneys general have filed a lawsuit against Amazon, alleging the company secretly and systematically manipulated its online advertising auctions. The complaint, filed in a Washington state federal court, claims that Amazon used a 'soft reserve' mechanism and artificial auction participants to inflate the minimum prices paid by advertisers.
Regulators allege that since 2018, these practices have deceived more than 1.2 million advertisers, including over 500,000 small and medium-sized businesses. The lawsuit suggests that these undisclosed surcharges may have generated more than $20 billion in additional revenue for Amazon. Furthermore, officials stated that these increased advertising costs were likely passed on to consumers through higher prices for goods on the platform.
Amazon has strongly denied the allegations, calling the lawsuit 'misguided.' The company maintains that its advertising policies aim to show relevant ads and that average winning bid prices for sponsored products actually decreased by 50% between 2019 and 2025. Following the news, Amazon's shares saw a decline of approximately 2.5%.
Entities
Alphabet · Amazon · Andrew Ferguson · Andrew N. Ferguson · Federal Trade Commission · Jeff Jackson · Letitia James · Meta · Seattle · Washington
Claims
What the coverage asserts, and how many sources carry each claim.
- [DISPUTED] Amazon shares fell over 3%, resulting in an approximately $86 billion loss in market value.
- [● 3 SOURCES] The lawsuit will be joined by more than 20 state attorneys general. nemosnewsnetwork.com · www.joemygod.com
- [● 23 SOURCES] The alleged price manipulation earned Amazon tens of billions of dollars over a seven-year period. nemosnewsnetwork.com · www.joemygod.com · bitcoinethereumnews.com · thedesk.net · olhardigital.com.br · +18 more
- [● 3 SOURCES] The FTC plans to file a lawsuit against Amazon alleging the company manipulated advertising prices. nemosnewsnetwork.com · www.joemygod.com
- [● 10 SOURCES] Amazon's digital advertising platform earned $68 billion in 2025. nemosnewsnetwork.com · www.eldia.es · ncdoj.gov · thedesk.net · www.brasilemfolhas.com.br · +4 more
- [● 27 SOURCES] Amazon allegedly began using a 'soft reserve' mechanism in 2018 to secretly raise minimum advertising prices. nemosnewsnetwork.com · ncdoj.gov · thedesk.net · olhardigital.com.br · abc17news.com · +21 more
- [● 13 SOURCES] Amazon's digital advertising platform earned approximately $68 billion in revenue in 2025. www.elcorreoweb.es · www.elperiodicoextremadura.com · www.levante-emv.com · nemosnewsnetwork.com · ncdoj.gov · +8 more
- [● 44 SOURCES] The FTC and a bipartisan group of 22 state attorneys general filed a lawsuit against Amazon alleging the company deceived advertisers by secretly raising minimum ad prices. www.elcorreoweb.es · www.elperiodicoextremadura.com · www.levante-emv.com · nemosnewsnetwork.com · bitcoinethereumnews.com · +36 more
- [DISPUTED] Amazon shares fell between 2.5% and 3% following the news of the lawsuit. www.elcorreoweb.es · nemosnewsnetwork.com · bitcoinethereumnews.com · china.timesofnews.com · www.eldia.es · +6 more
- [● 14 SOURCES] Amazon previously paid a $2.5 billion fine regarding Amazon Prime subscription practices. www.elcorreoweb.es · www.elperiodicoextremadura.com · www.levante-emv.com · nemosnewsnetwork.com · www.npr.org · +8 more
- [● 18 SOURCES] Amazon denied the accusations, stating that advertisers adjust their bids based on real-world performance rather than auction mechanics. www.elcorreoweb.es · www.elperiodicoextremadura.com · www.levante-emv.com · abc17news.com · www.npr.org · +10 more
- [● 26 SOURCES] Amazon allegedly manipulated advertising prices for seven years using 'soft reserve' bids to increase minimum costs. www.elcorreoweb.es · www.elperiodicoextremadura.com · www.levante-emv.com · www.allgaeuer-zeitung.de · www.diarioviseu.pt · +20 more