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Current status:Lawsuit pendingNo settlementNo official refund programNo claim formNo court ruling on liabilityLast verified: September 2, 2026 at 5:53 p.m. PT
FTC + 22 states v. AmazonFiled Aug. 31, 2026

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Amazon Advertising
Auction Lawsuit Tracker

The government alleges Amazon used undisclosed “soft reserves” to raise Sponsored Ads prices. Amazon disputes deception and harm. The case is pending, and no refund or claim process currently exists.

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01 / Complaint02 / Amazon response03 / Court recordThree records. Kept distinct.
Verified case status

What is happening now

Pending
Lawsuit
Pending
Settlement
None announced
Official refund program
None
Claim form
None
Liability ruling
None
Last verified: Public-source verification. A complete live PACER docket has not been certified.
01
Case in 60 seconds

A pricing-mechanism dispute with billions at issue—and nothing yet decided

On August 31, 2026, the Federal Trade Commission and 22 states sued Amazon in federal court in Washington. The complaint alleges Amazon had described Sponsored Ads as generalized second-price auctions but increasingly used an internal “soft reserve” or “proxy second price” that could raise a click price above the competition-generated result, without exceeding the advertiser’s maximum bid. U.S. District Court filing via FTC

The government estimates roughly 1.2 million U.S. advertising customers may have been affected, including more than 500,000 small and medium-sized businesses. That estimate does not mean 1.2 million advertisers are eligible for compensation; no eligibility rules or recovery process exist. Federal Trade Commission

Amazon denies wrongdoing. It says relevance—not the raw highest bid—plays a central role, reserve pricing is ordinary, advertisers understood bids as maximum CPCs, and its system delivered better advertiser outcomes. Amazon

Continue to the complete case overview
Three distinct records

Allegation, response, and ruling are not the same thing

01

Government alleges

The FTC and 22 states say Amazon used undisclosed soft reserves to raise Sponsored Ads prices above a competition-generated result.

02

Amazon says

Amazon says relevance drives ad placement, reserve prices are common, bids are maximum CPCs, and advertisers were neither deceived nor harmed.

03

Court has ruled

No court has ruled on liability, advertiser damages, restitution, a settlement, or eligibility for recovery.

02The disputed mechanism

One alleged pricing layer,
shown simply

Real ad auctions can include relevance and multiple placements, as Amazon stresses. This illustration isolates the complaint’s theory.

01Maximum bid$5.00Advertiser’s ceiling
02GSP result≈ $2.01Simplified competitor-set price
03Final CPC$4.25Soft reserve in this example

Government’s allegation: an Amazon-selected reserve could replace the competition-generated result while remaining below the maximum bid.

Amazon’s response: the model oversimplifies relevance-adjusted mechanics, and reserve prices are common. Amazon

Explore the full visual explainer
03Potential recovery

No settlement fund.
No refund program.
No claim form.

The government seeks monetary relief. Whether any money will reach advertisers—and how—remains unknown.

Not available

Refund status

No official Amazon advertising refund program has been announced for this case.

Check current status →Not available

Claim form

There is no official or court-approved claim form. Our email list is not claim registration.

Track claim forms →Dated search

Private cases

No specifically matching public class action was identified as of the stated verification date.

Review private litigation →
04Who may be relevant

Potential reach is not eligibility

Sellers, brands, vendors, agencies, and other U.S. advertisers may be relevant. Final scope depends on evidence, products, periods, and any remedy.

Government estimate≈1.2M

U.S. advertising customers estimated to have been affected

Within that estimate>500K

Small and medium-sized businesses

Determined eligible today0

No compensation eligibility rules exist

Review the advertiser-scope analysis
Open record

What we still don’t know

Redactions, missing data, and future court decisions limit what can responsibly be said today.

  • Exact ordinary-day soft-reserve uplift limits in redacted passages
  • Exact Prime Day and Black Friday surcharge ceilings
  • Several internal revenue projections and experiment treatment levels
  • The exact ROAS values and underlying redacted chart data
  • Complete underlying auction-level data and counterfactual methodology
  • Precise product-specific restitution periods, if any
  • Whether any recovery process will exist and who would be eligible
  • A complete authenticated history of Amazon Advertising Agreement arbitration terms
05Timeline preview

From auction descriptions to federal litigation

The labels matter: public representations, government allegations, party responses, and court events are different records.

  1. Government allegation

    Second-price explanations cited

    The complaint cites Amazon educational materials the government says shaped advertiser expectations.

  2. Government allegation

    Soft reserves allegedly expand

    Plaintiffs allege an Amazon-selected pricing layer was introduced and expanded. Amazon disputes the characterization.

  3. Confirmed event

    FTC and 22 states file suit

    Amazon issues its detailed public response the same day.

Explore the sourced timeline
Primary record

Read both sides directly

Start with the filed complaint and Amazon’s response. Our summaries link back to original materials.

Browse the source library
01Court filing · 181 pagesFiled complaintGovernment allegations02Company statementAmazon’s public responseDefendant’s position
Essential answers

Three questions to ask before acting

Read the complete FAQ →
Has Amazon been found liable?

No. The litigation is pending, and the court has not ruled that Amazon violated the law or harmed advertisers.

Can advertisers file a claim?

No official claim form or compensation application exists for this case.

Is the government case a class action?

No. It is an enforcement action brought by the FTC and state governments.