The Federal Trade Commission says previously redacted portions of a complaint against Amazon describe alleged increases in prices charged to advertisers. The FTC and 22 states accuse Amazon of secretly raising prices above the results of its online advertising auctions; the allegations have not been established by this record as court findings.
The agency's November 5 release points to an updated complaint filed in federal court in Washington. The court-stamped complaint available through the FTC is dated October 28. The underlying lawsuit was filed in August, the FTC says; this release describes newly public details, not a new lawsuit.
What the plaintiffs allege
The complaint alleges that Amazon calculated a reserve price that could raise an advertiser's cost by as much as 50% on ordinary days and 250% on special shopping days such as Prime Day or Black Friday. These are alleged maximum increases, not the increase charged to every advertiser.
The complaint also alleges that during the 2021 holiday season average cost per click rose 20% over five days, with increases exceeding 200% for some advertisers. Cost per click is the amount charged when a user clicks an advertisement.
According to the complaint, an Amazon team reported more than $87 million in increased worldwide revenue from a 2022 holiday effort. The FTC and states seek an injunction, monetary relief and other relief; their requested remedies are not a judgment.
What remains open
The complaint is the plaintiffs' account. It is not proof that the court has accepted their claims, and it does not provide Amazon's response. The FTC release says the newly available material had been redacted in an earlier version. Readers can inspect the agency's explanation and the complaint through the links below.