Unredacted documents in the FTC's Amazon lawsuit shed light on the company's secret price-gouging algorithm

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A new and mostly unredacted version of the FTC's lawsuit against Amazon has been released today. The new documents show Amazon execs discussing the company's policies for third-party sellers.

It looks like Amazon is hellbent on keeping its spot as the biggest online retailer — even if that means hurting both sellers and customers. In September, thewere previously withheld from the public, but today a mostly unredacted version was released, including details about Amazon's secret pricing tool, known as Project Nessie. These algorithms helped Amazon increase prices by over $1 billion over two years, the FTC alleges.

the internal documents cited in the original complaint show that Amazon executives were well aware of the effects of the company's policies. In the documents, Amazon executives acknowledged that these policies, which included requiring Amazon sellers to have the lowest prices online or risk consequences, had a “punitive aspect.” One executive pointed out that many sellers “live in constant fear” of being penalized by Amazon for not following the ever-changing pricing policy..

 

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