On August 31, the Federal Trade Commission and 22 state attorneys general filed a major antitrust lawsuit against Amazon, alleging the company secretly manipulated its Sponsored Products advertising auction mechanics for over seven years. The complaint—181 pages—claims these algorithmic changes extracted “tens of billions of dollars” from more than one million brands and sellers without transparency.
What the Complaint Alleges
- Amazon allegedly altered how its advertising auction calculates the actual price sellers pay per click, deviating from the advertised mechanism
- These changes occurred over more than seven years
- The scale of extraction is estimated at tens of billions dollars across a million-plus sellers and brands
- The FTC argues this constitutes unfair and deceptive practice, harming both advertisers and consumers
Why This Matters for FBA Sellers
- PPC cost structure uncertainty: If the lawsuit’s claims are validated, it raises questions about whether sellers have been paying fair rates for Sponsored Products ads relative to what they believed they were bidding
- Potential remedies: Court outcomes could affect future PPC pricing models, auction transparency, or even lead to refunds for affected sellers
- Compliance & account risk: Sellers should monitor this case as it may influence how Amazon reports advertising metrics and pricing going forward
How Squatio Helps
Squatio Optimize (PPC intelligence) gives you real-time visibility into your ad spend, bid performance, and ROI across campaigns. As the legal landscape around Amazon’s advertising practices evolves, having transparent, independent data on your PPC costs and performance—separate from Amazon’s reporting—becomes even more critical. Use it to baseline your current efficiency and track whether your costs shift as this case progresses.
Have you noticed unexplained changes in your PPC costs or ACOS trends over time, or do you have concerns about the relationship between your bids and actual spend?
Source: The FTC Is Suing Amazon Over How Sponsored Products Pricing Actually Works