How Amazon’s ‘Secret’ Ad Pricing System Worked, According to the FTC

The Federal Trade Commission filed suit against Amazon on Monday alleging the company manipulated ad-auction pricing after advertisers had already submitted bids, a practice the agency claims cost advertisers billions of dollars. The lawsuit accuses Amazon of secretly raising minimum prices in certain auctions once bids were entered, effectively forcing advertisers to pay more than the transparent auction process would suggest.

The FTC's complaint centers on what it describes as a deceptive pricing mechanism within Amazon's advertising platform. By adjusting price floors after bid submission, the company allegedly undermined the integrity of its auction system while extracting higher payments from merchants and brands competing for visibility on the e-commerce platform. The agency characterizes the practice as secret, suggesting advertisers were unaware their bids were being subjected to retroactive price increases.

The legal action adds regulatory pressure to Amazon's advertising business, which has become a significant revenue driver alongside its core retail operations. The complaint arrives as the company faces intensifying scrutiny over its market practices across multiple business lines.