Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

FTC sues Amazon over ‘deceptive’ Prime sign-up and cancellation process

by June 24, 2023
June 24, 2023
FTC sues Amazon over ‘deceptive’ Prime sign-up and cancellation process

The Federal Trade Commission on Wednesday sued Amazon, alleging the nation’s dominant online retailer intentionally duped millions of consumers into signing up for its mainstay Prime program and “sabotaged” their attempts to cancel.

The agency claims Amazon violated the FTC Act and the Restore Online Shoppers’ Confidence Act by using so-called dark patterns, or deceptive design tactics meant to steer users toward a specific choice, to push consumers to enroll in Prime without their consent.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Khan said in a statement.

The FTC had been investigating sign-up and cancellation processes for Amazon’s Prime program since March 2021. Tensions flared between Amazon and the FTC when the agency sought to have CEO Andy Jassy and founder Jeff Bezos testify on the company’s Prime practices. Amazon argued the request would be unduly and burdensome, which the FTC rejected.

More from CNBC:

I’m a Harvard neuroscientist. Here’s the No. 1 music I listen to when I need to focus — it’s not classical Powell expects more Fed rate hikes ahead as inflation fight ‘has a long way to go’U.S. withdraws new charges in Sam Bankman-Fried case, punts them to 2024

Launched in 2005, the Prime program has grown to become one of the most popular subscription services in the world, with more than 200 million members globally, and it has generated billions of dollars for Amazon. It costs $139 a year and includes perks like free shipping and access to streaming content.

The lawsuit, filed in U.S. District Court for the Western District of Washington, accuses Amazon leadership of slowing or rejecting changes that would have made it easier for users to cancel Prime because those changes “adversely affected Amazon’s bottom line.”

Amazon made it difficult for consumers to buy items on its site without Prime, and a button that instructed users to complete their transaction did not clearly state that they were also agreeing to join Prime for a recurring subscription, the complaint states.

The cancellation process is also difficult to navigate and designed to deter consumers from ending their Prime subscription, the FTC alleged. Amazon used an internal term called “Iliad” to describe the process, referencing Homer’s epic poem about the Trojan War, the agency said, citing a report by Insider.

The complaint marks the third lawsuit the FTC has filed against Amazon in the last month. Amazon in late May agreed to pay the agency more than $30 million to settle cases alleging privacy lapses in its Alexa and Ring units. Amazon said it disagreed with the FTC’s claims but that it settled in order to move on from the matter.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Honda recalls 1.2 million U.S. vehicles for rear camera issue
next post
Nickel and Lithium Targets Identified at 14 Mile Well

Related Posts

Tesla CEO Elon Musk says he favors ‘no...

May 25, 2024

Sports bar chain Twin Peaks is going public....

February 1, 2025

CEOs want workers back in offices—this company is...

February 22, 2025

Trump Organization sues Capital One bank over account...

March 11, 2025

Nearly 5M blenders sold at Costco, Target and...

January 2, 2024

Cut from projects, dropped by agents: How the...

December 3, 2023

Fed Chair Powell calls inflation ‘too high’ and...

August 26, 2023

Kraft Heinz to remove artificial dyes from U.S....

June 18, 2025

As Trump eyes more tariffs, South Korea remains...

February 15, 2025

Bitcoin prices hit all-time high, soaring to nearly...

March 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • How I Triple My Returns With 3x Leveraged ETFs!

    • How to Find Compelling Charts in Every Sector

    • EVs Now Emit 73 percent Less Than Gasoline Cars Over Their Lifetime, Says ICCT Study

    • Cygnus Metals Limited: Issue of Performance Rights

    • FPX Nickel Announces Share-Based Compensation Grant

    • Blue Lagoon Resources Officially Opens Dome Mountain Gold Mine in British Columbia

    Categories

    • Business (1,287)
    • Investing (2,662)
    • Politics (3,699)
    • Stocks (1,711)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved