Amazon made $1 billion through secret price raising algorithm -US FTC
Amazon made $1 billion through secret price raising algorithm -US FTC
Amazon.com 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.
We really need a functioning IRS, FTC and SEC. Just won't happen if repugs are constantly elected.
No, what we really need is to end capitalism, not pin our hopes on one team or another when both exist to uphold the very system enabling this bullshit (hint: their agencies are never going to work for you).
wait, I thought that it was covid and supply chains and such and actually that the profit motive encourages them to lower prices because competition and so on
You're forgetting one thing, Amazon has no real competition. Do you have a cloud service that makes you profit hand over fist so that you can dump that money into a loss leader service like amazon delivery?
No?
Well then they're going to undercut you to the point of zero profit margin to suffocate your business.
eBay all the way, boys and girls.
What’s even wilder is that Amazon made no profit for the first 20 years of its existence, something the Feds claim makes Amazon even more dangerous as they spent considerable time building their network and have now turned on full money making mode.
That was just creative accounting so they wouldn't have to pay tax.
Oh... this huge pile of revenue? That's not profit. We're reinvesting it into logistics and executive salaries. We lost money this year. -Amazon
Do you mean Amazon the website? Surely they were making money somehow…
It means for the first 20 years they spent all of their profit on expansion / R&D
profit =/= revenue
I'm surprised that there are still people who are surprised about this price hiking algorithm. Have you never seen weirdly fluctuating proves on Amazon before?!
I’ve seen the price go up just by putting it in the basket.
They claimed they stopped using this system a few years ago… pretty sure that’s a technicality where they’re using a successor.
One of the most annoying things for me is how prices fluctuate on items that can’t possibly have that much fluctuation. The following were all sold and fulfilled by Amazon directly. These bandages I use… one week $8, then $13 next time I look, then $10, then $6. Hot sauce: one time $12, then $15, then $20, then $16. Biscuit mix: one time $24, then $45, then $36. It’s all very opaque. I just want one price.
Why are you buying bandages, hot sauce and biscuits on Amazon?
Unless you live in a suburb hell without safe transportation means, please stop giving them your money.
I live in a country where Amazon cannot deliver and I’m in love because of that. Thanks complicated customs laws that keep Amazon out <3
I've had items show different prices of an item on 3 different devices all logged into the same account.
So, where do we sign up for the class action?
So you can get 5c and the lawyers get 95c for each dollar?
I remember an article ages ago that showed that Amazon, undoubtedly a monopoly, was on the right side of the law because of the "consumer welfare standard".
This was back when they were in growth mode and still unprofitable, but it seems obvious with this and their now record profits that they no longer pass that test. Time to break it up.
That's exactly why I don't understand people defending Steam just because right now they are only using their monopoly against the developers but not against the users. One day that will change and move will have seen it coming.
Same with Google abusing YouTube creators for years but only now when they start pushing against adblock people look for alternatives.
Too many people are just lazy and complicit
Valve isn't publicly traded company, so Gaben is a BDFL.
Who knows what happens after him. But sure, if there is any other game provider with comparable service, nobody will complain.
It's just there aren't any
You're completely right. People suck steams dick are ridiculously hypocritical and blond.
I was mocked for defending Epic trying to compete withs steam. They're doing great work for Devs and gamers. But sadly, blind gamers (who claim they hate monopolys) aren't self aware enough to see the trees through the forest.
Well I didn’t think that they LOST money using it!!
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.
The original article contains 661 words, the summary contains 167 words. Saved 75%. I'm a bot and I'm open source!
I feel like proprietary software should be open for auditing for reasons exactly like this.
"Amazon extracted $1 billion of wealth from Americans through secret price aising algorithm."
wow they might get a slap on the wrist and a 50 dollar fine for this.
aaah, innovation™
It’s just bait and switch anymore.
They offer you a plan that has “x y z”features, then they make new plans with “v w z” features that are lesser that what baited you into accepting the first plan and charge you the same - or more.
Bait and switch…just with a sufficient gap to make you not want to leave.
robots keep paying me my return in things I didn’t want to return and even giving them a notice about it I just get a robotic response where they just ignore me,,, but ok. I’ll just keep the money and the product then since they don’t seem to be counting their losses against whatever ‘scheme’ wins they think they got going on. stares at giant hole in the ship
What?
He keeps returning rocks and telling Amazon they're products and claiming amazon is just kind of doing jt. And doesn't know he gon get caught