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Federal Trade Commission investigates Amazon over deceptive pricing practices
The agency alleges Amazon inflated prices in online search advertising auctions through deceptive practices, adding to a growing pile of regulatory trouble for the tech giant.
The FTC has been investigating Amazon’s search advertising auction practices since at least September 2025, focusing on allegations that the company misled advertisers by failing to properly disclose key terms, including reserve pricing — hidden minimum price floors that could inflate what advertisers pay without their knowledge. As of August 2026, the FTC has not filed a lawsuit regarding these auction allegations, though formal complaints could emerge as early as summer 2026.
A billion here, a billion there
In September 2025, Amazon agreed to a $2.5 billion settlement over deceptive practices related to Prime subscriptions. That deal included a $1 billion civil penalty, the largest ever imposed for an FTC rule violation, plus $1.5 billion earmarked for refunds to roughly 35 million consumers who got caught up in what regulators described as manipulative enrollment tactics.
How reserve pricing works, and why it matters
Reserve prices in ad auctions aren’t inherently illegal. Google and other platforms use similar mechanisms. The issue, according to the FTC, is disclosure. If advertisers don’t know these floors exist, they can’t make informed decisions about their bids, and they may end up paying significantly more than a transparent market would dictate.
The bigger regulatory picture
Beyond the Prime settlement, a separate antitrust case targeting Amazon’s competitive practices is scheduled for trial in early 2027. That case covers a broader range of allegations, including concerns about pricing algorithms and ad operations that regulators say harm both competition and consumers. A smaller settlement in June 2026 related to Fair Credit Reporting Act violations cost Amazon $2.25 million.