It is - they are Nessler tests!
Here is a quote from Prime:
Q: I am using Prime™ to control ammonia but my test kit says it is not doing anything, in fact it looks like it added ammonia! What is going on?
A: A Nessler based kit will not read ammonia properly if you are using Prime™... it will look "off scale", sort of a muddy brown (incidentally a Nessler kit will not work with any other products similar to Prime™). A salicylate based kit can be used, but with caution. Under the conditions of a salicylate kit the ammonia-Prime complex will be broken down eventually giving a false reading of ammonia (same as with other products like Prime™), so the key with a salicylate kit is to take the reading right away. However, the best solution ;-) is to use our MultiTest: Ammonia™ kit... it uses a gas exchange sensor system which is not affected by the presence of Prime™ or other similar products. It also has the added advantage that it can detect the more dangerous free ammonia and distinguish it from total ammonia (which is both the free and ionized forms of ammonia (the ionized form is not toxic)).
I still dunno why it doesn't work (hopefully Betty knows!)

EDIT:
OK - I found this quote from the Seachem people for their test kits & it seems to explain why these tests don't work ((Under the ammonia section)
Seachem Basics Test Kit
Combination of 5 essential Marine Tests offering: pH, Alkalinity, Ammonia, Nitrite, and Nitrate. Over 75 tests of each.
Marine pH, Alkalinity: This kit features a unique dye that has a pronounced color change between 8.0 to 8.3, making it the easiest kit on the market to read in that critical range. Alkalinity can be read from the same sample in 0.5 or 1 meq/L increments.
Ammonia: This kit measures total (NH3 and NH4+) and free ammonia (NH3 only) down to 0.05 mg/L and is virtually interference free in marine and fresh water. Free ammonia is the toxic form of ammonia (vs. ionized Ammonia NH4+ which is non-toxic) and thus it is much more important to keep an eye on the level of free ammonia in your system. This kit is based on the same gas exchange technology that is used in the Ammonia Alert and thus is the only kit on the market that can read levels of free ammonia while using ammonia removal products such as Prime, Safe, AmGuard and any similar competing products. The other kits (salicylate or Nessler based) determine the total ammonia by raising the pH of the test solution to 12 or greater. At this high pH all ammonia removal products will breakdown and rerelease the ammonia, thus giving you a false ammonia reading.
Nitrite, Nitrate: This kit measures nitrite down to 0.2 mg/L and nitrate down to 2 mg/L in marine or freshwater.
Iodine: This kit measures iodine or iodide to less than 0.005 mg/L. Seachem stands alone in offering this important test to the reef aquarian.