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FTC and 22 states sue Amazon over secret ad surcharge scheme
The FTC and 22 state attorneys general sued Amazon on August 31, alleging it secretly inflated prices in its advertising auctions after 2019 rule changes and may have taken more than $20 billion from advertisers. Nothing changes in Seller Central today, but it is a good week to stop reading ad performance through blended ACOS.
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Sep 2, 2026 · 3 min read · 647 words
Updated September 2, 2026
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Frequently Asked Questions
Common questions about this topic
- The complaint filed on August 31, 2026 alleges that Amazon secretly inflated prices in its advertising auctions after rule changes made in 2019, without telling advertisers. The FTC calls it a secret ad surcharge scheme.
- The Federal Trade Commission, joined by 22 state attorneys general. Texas filed a separate state action on the same day.
- The complaint says Amazon may have taken more than $20 billion from advertisers through the practices described. That figure is an allegation, not a finding.
- The case covers Sponsored Products, Sponsored Brands and display advertising after the 2019 auction rule changes.
- Nothing changes in Seller Central today. Litigation of this size runs for years. What sellers can do now is stop reading ad performance through blended ACOS alone and look at ad cost per unit sold at product level.
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