via Search Engine Journal

FTC Complaint Alleges Amazon Inflated Ad Auction Prices

An unredacted FTC and state complaint alleges Amazon secretly raised ad auction prices by up to 250% during major sales events.

A newly unredacted complaint from the Federal Trade Commission and a state alleges that Amazon secretly inflated advertising auction prices during Prime Day and Black Friday. The alleged increases reached as much as 250%, according to Search Engine Journal.

The disclosure adds detail to a lawsuit concerning an alleged surcharge in Amazon’s advertising auctions. The figure represents the maximum increase alleged in the complaint, not an increase established for every advertiser or auction.

The claims remain allegations. The available source summary does not specify which advertisers or campaigns were affected, how the alleged increases were calculated, or how frequently they occurred.

What this means for marketers

Advertisers can review their own auction costs around major sales events and compare them with other periods. A change in costs alone would not establish that a surcharge was applied; the complaint’s allegations should be distinguished from findings of fact.

Source: Search Engine Journal — https://www.searchenginejournal.com/ftc-unseals-details-amazon-ads-auction-surcharge-suit/596010/

This is an original summary published for informational purposes; all rights to the underlying reporting belong to the source.

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