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

The Federal Trade Commission connected Wednesday sued Amazon, alleging the nation's ascendant online retailer intentionally duped millions of consumers into signing up for its mainstay Prime programme and "sabotaged" their attempts to cancel.

The bureau claims Amazon violated the FTC Act and the Restore Online Shoppers' Confidence Act by utilizing alleged acheronian patterns, oregon deceptive plan tactics meant to steer users toward a circumstantial choice, to propulsion consumers to enroll successful Prime without their consent.

"Amazon tricked and trapped radical into recurring subscriptions without their consent, not lone frustrating users but besides costing them important money," FTC Chair Lina Khan said successful a statement.

The FTC had been investigating sign-up and cancellation processes for Amazon's Prime programme since March 2021. Tensions flared betwixt Amazon and the FTC erstwhile the bureau sought to person CEO Andy Jassy and laminitis Jeff Bezos attest connected the company's Prime practices. Amazon argued the petition would beryllium unduly and burdensome, which the FTC rejected.

The Prime program, launched successful 2005, has grown to go 1 of the astir fashionable subscription services successful the world, with much than 200 cardinal members globally, and it has generated billions of dollars for Amazon. It costs $139 a twelvemonth and includes perks similar escaped shipping and entree to streaming content.

Representatives from Amazon didn't instantly respond to a petition for comment.

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