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Amazon made $1 billion through secret price raising algorithm -US FTC
(www.reuters.com)
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this post was submitted on 03 Nov 2023
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This is the best summary I could come up with:
WASHINGTON, Nov 2 (Reuters) - Amazon.com (AMZN.O) used a series of illegal strategies to boost profits at its online retail empire, including an algorithm that pushed up prices U.S. households paid by more than $1 billion, the U.S. Federal Trade Commission detailed in a new court filing on Thursday.
... Amazon used Project Nessie to extract more than a billion dollars directly from Americans' pocketbooks," the FTC said.
Amazon spokesperson Tim Doyle said the FTC "grossly mischaracterizes" the pricing tool and the company stopped using it several years ago.
Amazon paused the algorithm during its Prime Day sales events and the holiday shopping season when there was more media and customer attention on the online retailer, the FTC said.
The FTC called Nessie's algorithm an "unfair method of competition" because it manipulates other online stores into raising prices, allowing Amazon to do the same.
In the complaint, the FTC noted that Amazon does not allow other big online stores such as Walmart.com to sell on its platform.
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