Federal Trade Commission sues Amazon for deceptive practices with Prime membership
The delivery giant denies the allegations
The Federal Trade Commission is suing Amazon following an intense and long investigation which revealed that the delivery giant was enrolling shoppers into its Prime membership and making it difficult to cancel, according to reporting by the Associated Press.
The FTC is accusing Amazon of using tactics online to illegally onboard new members for its Prime account, which offers special deals and free shipping for a yearly or monthly fee. When users would complete their transactions they also would be enrolled into the program.
A complaint filed in the U.S. District Court for the Western District of Washington states that Amazon leadership was slow to act on or rejected suggested changes which would make canceling easier for users.
Amazon called this delay tactic “Iliad,” after a Greek poem describing the long-lasting siege of Troy during the Trojan War, the AP writes
Federal Trade Commission Chair Lina Khan has accused Amazon of tricking and trapping people into subscriptions without their consent. Businesses were also impacted, Khan said.
The Federal Trade Commission says Amazon has violated both the FTC Act and the Restore Online Shoppers’ Confidence Act — both of which concern unfair business practices.
Amazon says the Federal Trade Commission’s accusations are false and that it is clear and simple for shoppers to sign up and cancel Prime membership.
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