Amazon Made $1 Billion Through Secret Price Raising Algorithm

Recently the news came on the internet that the US Federal Trade Commission (FTC) said on Thursday in a new court filing that online retail giant Amazon.com utilized illegal methods to increase prices and boost profits. Since the news came on the internet it circulated on social networking sites and many people were very shocked. This news became a topic of discussion as this news left many questions in people’s minds. Now lots of people are very curious to know about the whole information about the news. In this article, we will try to give complete information about the news, so let’s continue the article.

Amazon

The FTC had filed a case in September, information of which was disclosed on Thursday when a performance of the lawsuit with fewer redactions was made public in US District Court in Seattle. FTC reported, that Amazon utilized a secret algorithm known as “Project Nessie” to push up prices US households paid by over $1 billion. Amazon is an American multinational technology firm focusing on e-commerce, online advertising, cloud computing, and digital streaming. This news left many people in shock and pain. Scroll down to the next page for more information about the news.

As per the report, Amazon made a “secret algorithm internally code-named ” Project Nessie’ to determine detailed outcomes for which it expects other online stores will follow Amazon’s price growths. … Amazon utilized Project Nessie to remove more than a billion dollars instantly from Americans’ pocketbooks,”. The complaint stated, that Amazon started testing the pricing algorithm in 2010 to catch whether other online vendors tracked its costs and to increase prices for outcomes that have been possible to be tracked by opponents. You are on the right page for more information about the news, so please read the complete article.

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Following outside vendors started matching on raising their own cost, Amazon would continue to sell the product at an inflated cost, which resulted in $1 billion in excess profit the FTC alleged. Amazon paused the algorithm during its Prime Day sales occasions and the holiday shopping season when there was more media and customer attention on the online retailer. Since the news came on the internet it has gone viral and people want to know about the complete information. Here we have shared all the information about the news if we get any information then we will update you soon. Stay connected with us for more updates.

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Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.