The U.S. Federal Trade Commission and 22 state attorneys general filed an updated, unredacted complaint against Amazon in the Western District of Washington. The lawsuit, originally filed in August, alleges that Amazon covertly increased the prices advertisers paid for ads on its platforms through hidden surcharges.

According to the newly public allegations, Amazon raised advertising prices by as much as 50% above auction results on ordinary days and as much as 250% on major shopping days, including Prime Day and Black Friday. During the 2021 holiday season, the complaint says, average cost-per-click rose by 20%, with some advertisers seeing increases exceeding 200%. Amazon allegedly increased surcharges during the 2022 holiday season to generate an additional $87 million worldwide.

The alleged increases affected advertisers of different sizes. One large food and beverage advertiser reportedly faced price increases of more than 100% during Prime Day 2023. Amazon employees allegedly recognized that the increases reduced the advertiser’s return on ad spend and were “destroying campaign performance.”

The complaint also alleges that Amazon used the surcharges to help meet revenue targets. In 2023, executives discussed finding an additional $40 million to close a gap against corporate financial goals. When advertisers questioned whether the second-price auction process had changed, Amazon allegedly told them that higher costs reflected increased competition, while denying that the auction had changed or contained a bug.

The allegations are claims in the complaint and have not been established as findings of fact. The FTC and attorneys general from Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington are plaintiffs.