Report: Amazon made $1B with secret algorithm for spiking prices Internet-wide
Report: Amazon made $1B with secret algorithm for spiking prices Internet-wide
Report reveals details about Amazon's secret algorithm redacted in FTC complaint.
Last week, the Federal Trade Commission sued Amazon, alleging that the online retailer was illegally maintaining a monopoly. Much of the FTC's complaint against Amazon was redacted, but The Wall Street Journal yesterday revealed key details obscured in the complaint regarding a secret algorithm. The FTC alleged that Amazon once used the algorithm to raise prices across the most popular online shopping destinations.
People familiar with the FTC's allegations in the complaint told the Journal that it all started when Amazon developed an algorithm code-named "Project Nessie." It allegedly works by manipulating rivals' weaker pricing algorithms and locking competitors into higher prices. The controversial algorithm was allegedly used for years and helped Amazon to "improve its profits on items across shopping categories" and "led competitors to raise their prices and charge customers more," the WSJ reported.
This isn’t surprising. But it’s gross and fuck Amazon and Bezos.
Here’s hoping something comes from the FTCs suit. I’m not hopeful. I’m sure it’s Amazon’s right to fuck the consumer and other businesses or something lol
It's the kind of thing that's so blatant you forget it's wildly illegal.
If only Republicans hated corporations then maybe someone would do something like organize a international convoy.
One who owns something usually don't hate it
I know it reports back home but the Firefox plugin that shows price history under the product is an essential plugin, IMO. Also setting up camel^3 alerts for big budget buys.
*Made a little less than 1B, they have to give the government a 0.01% cut because they got caught.
I "love" US companies that increase their profit with illegal and secret algorithms (no effort). Hope for big fines (50%, here we come!)and long lasting bans.
But not only 50% of the additional profit - should be something like at least double or triple that.
It's 'The Formula' from Fight Club:
I was a recall coordinator. My job was to apply the formula.
A new car built by my company leaves somewhere travelling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall?
Take the number of vehicles in the field, A. Multiply it by the probable rate of failure, B.
Multiply the result by the average out-of-court settlement, C.A x B x C equals X. If X is less than the cost of a recall, we don't do one.
The key to preventing this kind of thing is to make sure that X is always considerably higher than A x B x C. If monetary penalties are all that are being assessed, they need to be fucking astronomical to the point that no reasonable company would even consider taking the risk of getting caught, no matter how minute that risk is. Until we start operating like that, there's simply no incentive for any of these companies to stop breaking the law.
A $1.5 Billion fine would work as deterand.
But I am afraid US politics won't allow it.(lobbying)
That increased their revenue by less than 0.2%. Fuck people over to squeeze out every little bit of extra revenue you can get to make those shareholders happy.
Amazon made over 5 billion dollars last year. 0.2% is over a billion dollars. Not exactly squeezing blood from a stone.
What this highlights, though, is how easy it is for the rich to get richer. The median income earner in the US makes $56,000 annually. 0.2% of that $112 a year. I spent that yesterday and I don't make near 56k.
Why the fuck not when the penalty is probably 1/20th the profits...
Damn Loch Ness Monstah got way more than tree fiddy
Didn't Amazon discounted Project Nessie because it wasn't making them enough profit?
What's next? Ads that are targeted at us?