An updated complaint alleges that Amazon secretly charged advertisers up to 50% above auction results on ordinary days and up to 250% on major shopping days, adding detail to an existing lawsuit.
Sole source: An FTC press release says the US Federal Trade Commission and 22 states have made previously redacted allegations public in an updated complaint against Amazon, saying the company secretly increased prices in its search advertising auctions. The complaint alleges the increases reached up to 50% above auction results on ordinary days and up to 250% on major shopping days.
The Federal Trade Commission said it and its state partners sued Amazon in August in the Western District of Washington, alleging that covert price increases harmed advertisers. The newly public details add to that existing case; they are allegations, not court findings. Amazon’s response is absent from the captured material.
The agency also cites an internal acknowledgment that higher prices reduced one advertiser’s return on advertising spending and were “destroying campaign performance.”
The complaint alleges that when advertisers asked whether the auction process had changed, Amazon misleadingly attributed higher prices to increased competition. The allegations remain before the court in the existing case.
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