Sponsored By

Federal Trade Commission sues Amazon for deceptive practices with Prime membership

The delivery giant denies the allegations

Bill Wilson, Senior editor at Supermarket News

June 22, 2023

1 Min Read

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.

Related:Amazon still dominates ecommerce … for now



 

Read more about:

Amazon

About the Author

Bill Wilson

Senior editor at Supermarket News

Bill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News