Nobody can predict Amazon’s ad reserve prices, including Amazon. That is the defence.

The FTC and 22 states filed a lawsuit alleging Amazon deliberately inflated reserve prices in its Sponsored Products, Sponsored Brands and Sponsored Display auctions, causing over $20 billion in excess advertising costs since 2019. Regulators claim the scheme impacted roughly 1.2 million advertisers, including more than 500,000 small and medium-sized businesses.