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August 31, 2026
California Joins FTC and States in Lawsuit Against Amazon for Inflated Ad Prices
- California Attorney General Rob Bonta announced the state's involvement in a lawsuit accusing Amazon of secretly inflating advertising costs and misleading over 1 million brands and sellers.
- The lawsuit claims Amazon operated a first-price auction instead of the advertised second-price auction, charging advertisers their full winning bid nearly 80% of the time.
- Regulators allege this deceptive practice has extracted tens of billions from advertisers, with higher costs likely passed on to consumers.
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5 Sources
- FTC to File Lawsuit Alleging Amazon Deceived AdvertisersAug 31, 2026 at 6:00 PM · WSJ
- Amazon rigged billions in ad pricing, lawsuit from states and US watchdog allegesAug 31, 2026 at 9:28 PM · BBC
- Federal Trade Commission and 22 states sue Amazon over ad pricingAug 31, 2026 at 9:42 PM · AP
- California joins sweeping lawsuit accusing Amazon of ‘rigging’ billions of ad auctionsSep 1, 2026 at 7:00 AM · Independent
- California joins sweeping lawsuit accusing Amazon of ‘rigging’ billions of ad auctionsSep 1, 2026 at 7:01 AM · Independent