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Amazon Sued by States and FTC for Rigged Advertising Auctions

Guavy AI Editorial Team Published September 1, 2026

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Attorney General Jennifer Davenport and the Division of Consumer Affairs (DCA) have joined forces with the Federal Trade Commission (FTC) and a bipartisan coalition of 21 states to sue Amazon for allegedly rigging its advertising auctions. The suit claims that over seven years, Amazon secretly charged advertisers billions in illegal profits by manipulating auction prices.

The complaint details internal documents and conversations showing that Amazon concealed hidden surcharges from unwitting advertisers since at least 2019. It alleges that the e-commerce giant added an undisclosed 'soft reserve price' to its auction rules without notice, resulting in advertisers paying substantially more than they should have.

'For years, Amazon has been misrepresenting how it sets prices for advertising on its website,' said Attorney General Davenport. 'It promised competitive auctions but quietly replaced those results with inflated prices designed to pad its own profits.'

Amazon Sued by States and FTC for Rigged Advertising Auctions

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