Amazon Accused Of Raking In $1 Billion Through Deceptive Practices, According To FTC Suit
Portfolio Pulse from Bibhu Pattnaik
The Federal Trade Commission (FTC) has accused Amazon.com Inc. (NASDAQ:AMZN) of engaging in deceptive practices that increased consumer prices by over a billion dollars. The FTC alleges that Amazon used a covert algorithm, known as 'Project Nessie,' to artificially raise prices on certain items. The FTC also criticized Amazon for mandating that Prime sellers use its delivery services, contributing to a steep rise in seller fees. The FTC highlighted Amazon's exclusion of other large online retailers, such as Walmart Inc. (NYSE:WMT), from its marketplace.
November 04, 2023 | 4:38 pm
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NEGATIVE IMPACT
Amazon is accused by the FTC of deceptive practices that increased consumer prices by over a billion dollars. This could potentially harm Amazon's reputation and customer trust.
The FTC's allegations against Amazon could potentially harm the company's reputation and customer trust, which could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The FTC highlighted Amazon's exclusion of other large online retailers, such as Walmart, from its marketplace. This could potentially benefit Walmart if customers lose trust in Amazon and switch to other retailers.
The FTC's allegations against Amazon could potentially benefit Walmart if customers lose trust in Amazon and switch to other retailers, which could positively impact its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50