Consumers Affected
500,000
On August 31, 2026, New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs joined the FTC and a bipartisan coalition of 21 other states in suing Amazon, alleging that for over seven years the company secretly rigged its advertising auctions—converting advertised 'second price' auctions into first-price auctions with hidden 'soft reserve price' surcharges—overcharging more than 500,000 small- and medium-sized businesses and extracting tens of billions of dollars. The complaint alleges Amazon actively concealed the surcharges, gave false and misleading answers to advertisers who asked directly about the auction format, and applied inflated upcharges on high-volume shopping days like Prime Day and Black Friday. The lawsuit was just filed; no penalties or remedies have been imposed yet.
No remedies have been imposed yet—the coalition filed its complaint on August 31, 2026. The lawsuit alleges tens of billions of dollars in illegal overcharges extracted from advertisers; any monetary penalties, restitution, or injunctive relief would be determined as the litigation proceeds.
In-house teams that purchase digital advertising—particularly under Amazon Ads agreements (Sponsored Products, Sponsored Brands, Display Ads) or similar platform terms with Google, Meta, or other ad marketplaces—should review advertising services agreements, media buying contracts, and incorporated platform policies for pricing methodology representations (e.g., 'second price auction' or generalized second-price/GSP descriptions), fee schedule and surcharge disclosure clauses, and notice requirements for pricing or auction-rule changes. Key clauses to scrutinize include representations and warranties about how ad prices are set, pass-through surcharge provisions, competitive-pricing representations, audit and billing verification rights, refund or credit remedies for overbilling, and amendment/change-notice mechanics that would let a platform alter pricing unilaterally. Companies that resell advertising services or pass ad costs to customers (agencies, marketplace sellers, retail media partners) should also review customer contracts' cost pass-through and pricing transparency provisions, since inflated platform fees may have flowed downstream, and procurement should preserve bid logs and invoices to quantify potential overcharges.
Entity
Amazon
Industry
TechnologyOfficial Press Release
https://www.njoag.gov/ag-davenport-sues-amazon-with-ftc-and-21-states-for-rigging-advertising-auctions-reaping-billions-in-illegal-profits/
2026 0831 Amazon Advertising Complaint redacted
http://www.njoag.gov/wp-content/uploads/2026/08/2026-0831_Amazon-Advertising-Complaint-redacted.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"in a lawsuit against Amazon alleging that, for over seven years, the e-commerce tech giant secretly and systematically overcharged its advertisers"
"For Immediate Release: August 31, 2026"
"Attorney General Jennifer Davenport and the Division of Consumer Affairs (DCA) joined the Federal Trade Commission (FTC)"
"joined the Federal Trade Commission (FTC) and a bipartisan coalition of 21 other states in a lawsuit against Amazon"
"Amazon changed its auction rules without notice by adding an undisclosed surcharge that Amazon referred to internally as a “soft reserve price.”"
"including over 500,000 small- and medium-sized businesses"
$650K
The New Jersey Attorney General and Division of Consumer Affairs announced that Match Group, Inc. will pay $650,000 and change its business practices to settle allegations that it misrepresented or failed to disclose its criminal background screening policies and practices to New Jersey users, violating the New Jersey Consumer Fraud Act and the Internet Dating Safety Act. Under a Consent Order, Match must accurately represent its screening policies, notify existing New Jersey members of updated disclosures within 150 days, and post clear and conspicuous disclosures and safety notifications about the limitations of criminal background screenings.
A bipartisan coalition of state attorneys general led by New Jersey, California, Colorado, and Kentucky is taking Meta Platforms, Inc. to trial, alleging that Meta designed addictive features on Instagram and Facebook that harm minors' mental health, illegally collected data from children under 13 without the required protections under COPPA, and misled users about platform safety. Opening arguments begin August 18, 2026, in the U.S. District Court for the Northern District of California. No monetary penalty or final remedy has yet been imposed.
A coalition of 21 state attorneys general and Pennsylvania filed lawsuits against the Trump Administration, DOT, FMCSA, DHS, and AAMVA to prevent the unlawful demand for a database containing personal information of 17 million commercial driver's license holders. The lawsuits allege violations of federal privacy laws and the Administrative Procedure Act, and seek an emergency order to block the data transfer.
Attorney General Jennifer Davenport joined a coalition of 17 attorneys general in sending comment letters to the Office of the Comptroller of the Currency and the Federal Reserve Board, urging them to deny OppFi's application to acquire BNC National Bank and obtain a national bank charter. The coalition argues that the charter would allow OppFi to circumvent state usury laws and offer high-cost loans with APRs up to 200%, harming consumers.
$400.0M
Attorney General Jennifer Davenport joined a coalition of 43 states and territories in announcing a $400 million settlement in principle with Sandoz Inc. to resolve allegations of widespread price-fixing and anticompetitive conduct in the generic drug market. Sandoz will pay approximately $469 million total including prior settlements, and has agreed to internal reforms to ensure fair competition.
Press release announcing that Governor Mikie Sherrill will nominate consumer protection expert Christopher L. Peterson to serve as Director of the New Jersey Division of Consumer Affairs. Peterson is a former senior CFPB official and legal scholar. No enforcement action or privacy violation is described.