FTC opens sealed Amazon ad-auction claims citing surcharges as high as 250%

The Federal Trade Commission, together with attorneys general from 22 states, filed a revised complaint against Amazon that reveals previously sealed allegations about how the company ran its online search advertising auction, the commission said on November 5, 2026.

In August the FTC and those state partners sued Amazon in the Western District of Washington, claiming the retailer covertly pushed up advertising prices on its platforms. The newer filing, officials said, details advertiser harm and statements that misled clients about what drove the spikes.

Newly public passages allege Amazon quietly lifted ad prices by as much as 50% above ordinary auction results and by as much as 250% on peak retail events such as Prime Day or Black Friday. Average cost-per-click rose 20% during the 2021 holiday season, with some buyers seeing jumps above 200%, the complaint says. Over the 2022 holiday stretch, hidden surcharges allegedly added $87 million in worldwide revenue.

Both small shops and sophisticated brands were affected, according to the filing. One large food and beverage advertiser absorbed increases of more than 100% during Prime Day in 2023. Internal commentary cited in the complaint described the effect on return on ad spend as "destroying campaign performance."

The unsealed narrative also ties those markups to corporate revenue goals. In 2023, leaders talked about locating an extra $40 million to meet financial targets. The head of Amazon Ads told a senior vice president of ad products and technology that the team should "pull out all of the stops" to close gaps to plan, the complaint states.

When advertisers asked whether second-price auction mechanics had changed, Amazon staff allegedly blamed a denser marketplace rather than any design shift. Attorneys general from 22 states spanning Alaska to Washington joined the now-public complaint.