Amazon Accused of Rigging Billions of Ad Auctions to Pocket $20 Billion

The Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that the company has engaged in a secret scheme to overcharge advertisers on its platform. According to the FTC, since 2019, Amazon has been manipulating auction prices for Sponsored Products, Sponsored Brands, and Sponsored Display advertisements. The agency claims that this has resulted in Amazon extracting over $20 billion from its advertising customers.

The lawsuit alleges that Amazon's scheme involves overriding and replacing actual auction results with higher prices set by the company to increase profits. This means that advertisers have been paying more for ads than they would have if the auctions had been conducted fairly. The FTC investigation began in 2024, and it obtained internal documents and messages that reveal the extent of Amazon's manipulation.

The lawsuit has been joined by a bipartisan group of 22 state attorneys general from across the country. The FTC argues that Amazon's actions have deprived advertisers and consumers of the benefits of competition and fair dealing. The company's deception continues to this day, with billions of rigged auctions taking place on its platform.