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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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