North Carolina Attorney General Sues Amazon over Alleged Ad-Bidding Manipulation
North Carolina’s attorney general sued Amazon, alleging that it manipulated ad bidding and charged more than 1.2 million advertisers over $20 billion in additional fees.
What are the key facts?
- 1More than $20 billion at issue
- 2Over 500,000 small and midsize businesses affected
- 3Alleged conduct began in 2019
What happened?
North Carolina Attorney General Jeff Jackson announced an antitrust and fraud lawsuit against Amazon. The lawsuit concerns Amazon’s advertising auction system and the way it charges advertisers, alleging that the platform interfered with bidding results beginning in 2019.
The lawsuit alleges that Amazon substituted artificially inflated prices for the genuine second-highest bids, causing advertisers to pay more than they would have under a standard bidding mechanism. According to the court filing, more than 1.2 million advertisers were affected, including over 500,000 small and midsize businesses, with additional costs exceeding $20 billion.
The North Carolina Attorney General’s Office said these costs could ultimately be passed on to product prices through advertising spending. The case was filed by the state attorney general’s office; specific compensation, liability findings, and further proceedings remain subject to judicial determination.
What does this mean for cross-border sellers?
The lawsuit puts transparency in on-site ad auctions and fee calculations directly on sellers’ agendas. Do not assess advertising reports based solely on displayed bids; actual charges also matter. A common mistake is attributing a conversion decline entirely to creative or product issues while overlooking changes in bidding costs, allowing margins to erode unnoticed. Highest-priority action: This week, reconcile bids, actual charges, and order gross margins by campaign, and retain historical reports.