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FTC + 22 states sue Amazon over alleged secret Sponsored Ads surcharge (31 Aug 2026)

On 31 August 2026 the FTC and 22 states filed suit against Amazon.com, Inc. in the Western District of Washington (2:26-cv-03097), alleging that since about 2019 Amazon secretly inflated Sponsored Products, Sponsored Brands, and Sponsored Display auction prices with undisclosed “soft reserve” surcharges while telling advertisers it ran generalized second-price auctions—allegedly extracting tens of billions from ~1.2M advertisers. These are complaint allegations; Amazon’s About Amazon response calls the suit misguided and disputes advertiser and consumer harm. Distinct from the separate Amazon Prime FTC refund / subscription post. No affiliate; not legal advice.