Amazon accused of using Project Nessie algorithm to inflate prices
Amazon is accused of using a secret algorithm called Project Nessie to inflate prices on its platform. The algorithm monitored competitors' prices and raised its own, then reverted if rivals didn't follow. The practice was revealed through an FTC lawsuit. Amazon says it scrapped the program in 2019 and denies wrongdoing.
- Company involved
- Amazon
- AI system involved
- Project Nessie
10 source articles · read the reporting →
Washington Post uses algorithm to set subscription prices based on personal data
The Washington Post is accused of using an algorithm to set subscription prices based on subscribers' personal data. Some subscribers received emails stating that their new price was determined by an algorithm using their personal data. The practice, known as surveillance pricing, has drawn criticism from Democratic lawmakers who have proposed legislation to ban it.
- Company involved
- Washington Post
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Amazon Buy Box algorithm accused of overcharging UK consumers by £1 billion
Consumer champion Robert Hammond has filed a collective proceedings order application against Amazon in the UK Competition Appeal Tribunal. The claim alleges that Amazon's Buy Box algorithm manipulated search results to favour products more profitable for Amazon, obscuring cheaper alternatives and causing approximately 49.4 million UK consumers to overpay by more than £1 billion between October 2015 and June 2020. The algorithm determined the first-ranked item in the Buy Box, which consumers accepted over 80% of the time. The case is pending, and similar investigations by the Italian Competition Authority and the UK Competition and Markets Authority are ongoing.
- Company involved
- Amazon
- AI system involved
- Buy Box algorithm
5 source articles · read the reporting →
McDonald's Sued for Using AI to Manipulate Menu Prices
تُقاضى شركة ماكدونالدز لاستخدامها الذكاء الاصطناعي للتلاعب بأسعار قوائم الطعام. - Vietnam.vn
McDonald's is facing a class-action lawsuit in the US alleging it used an AI-powered pricing system to coordinate menu prices across franchises, potentially violating antitrust laws. The company denies the claims, stating that franchisees still determine their own prices and that the tools are common in the industry.
- Company involved
- McDonald's
1 source article · read the reporting →
Who Gives A Crap suspends AI agent after email error said prices would double - SmartCompany
The AI agent incorrectly confirmed a doubled subscription price to a customer.
- Company involved
- Who Gives A Crap
1 source article · read the reporting →