Direct Response Daily ·
FTC and states unseal claims Amazon inflated search ad prices above auctions
An unredacted FTC and 22-state complaint alleges Amazon charged advertisers up to 50% above auction outcomes, and up to 250% on peak days. Amazon has denied deceiving advertisers in its response to the original suit. Also: ads in Google AI answers.
FTC and states unseal claims that Amazon inflated search ad prices above auction results
The FTC and 22 state attorneys general filed an unredacted version of their August lawsuit against Amazon in the Western District of Washington. The complaint alleges Amazon charged advertisers up to 50% above auction outcomes on normal days and up to 250% on peak days like Prime Day or Black Friday.
It also alleges Amazon raised surcharges during the 2022 holiday season to add $87 million in worldwide revenue, lifted average CPC by 20% in the 2021 holidays, and told advertisers who asked that higher costs reflected more competition.
Why it matters
Advertisers buying Amazon search ads may want to compare peak-day CPCs against ordinary days in their own data and follow the case, keeping in mind these are allegations, not court findings.
Source: U.S. Federal Trade Commission: New Details Emerge in Amazon Ads Auction-Rigging CaseOfficial · Nov 5, 2026
Soft reserve prices sit at the center of the Amazon Ads case, SEJ explains
Search Engine Journal reports the dispute concerns soft reserve prices, which can push the final CPC above what rival bids alone would set. Amazon says advertisers can still win below that level and pay their own bid.
In its answer to the original suit, Amazon denied misleading or harming advertisers and said no one pays above their maximum bid. SEJ notes earlier FTC materials reference 2024 conduct and Sponsored Products, Sponsored Brands and Display Ads.
Why it matters
If you ran Amazon Ads in 2021 to 2023, check whether peak-season baselines rest on those periods. During Black Friday, consider tracking CPC separately from conversion rate to see what drives efficiency changes.
Source: Search Engine Journal: FTC Unseals Details In Amazon Ads Auction Surcharge Suit · Nov 5, 2026
Vendor report counts ads in Google AI answers, with apparel and electronics leading
Adthena, which sells ad tracking tools, counted about 175,100 U.S. ad placements in Google AI Overviews and AI Mode from June to September across five holiday categories, mostly apparel and consumer electronics. It also counted 204,489 ChatGPT ad placements in the same categories.
Per Google, existing Search, Shopping and Performance Max campaigns are automatically eligible for these placements. The report does not track clicks, spend or conversions.
Why it matters
Expect AI answer traffic to be blended into your normal Search reports. Review search terms, negative keywords and brand exclusions, since separate opt-outs for AI Overviews or AI Mode are not offered.
Source: Search Engine Journal: Ads In Google AI Answers Concentrate In Apparel & Electronics · Nov 5, 2026
How this brief is made: every morning we scan official marketplace and ad platform blogs, regulators and trade press, pick the stories that matter for direct response, and summarize them with AI. Each summary is checked against its source before publishing. Always read the original before acting. Editorial policy.