FTC and 22 State AGs Sue Amazon Over $20B in Alleged Fake Second-Price Ad Auctions Since 2018

The FTC and 22 state attorneys general sued Amazon on Aug 31, alleging that since 2018 the company covertly injected fake second-place bids into its 'second-price' search-ad auctions, overcharging more than 1.2 million advertisers by more than $20 billion. The suit seeks penalties, restitution and an injunction. AI angle is thin — this is algorithmic ad-pricing rather than model behavior.