FTC Reveals Amazon's Billion-Dollar Secret Pricing Scheme
Amazon's secret pricing algorithm, known as "Project Nessie," may have generated over $1 billion in additional profits for the company, according to new details released by the Federal Trade Commission (FTC) in its antitrust case against Amazon. The algorithm allegedly increased product prices on Amazon and monitored whether other retailers followed suit, reverting the prices if they didn't. Although Amazon reportedly stopped using Nessie in 2019, the FTC claims that the company has considered turning it back on. The FTC's complaint also includes allegations of Amazon accepting "junk" ads and manipulating its Prime membership signup system.