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FTC sues Amazon over Prime subscription

The company marketing is misleading FTC states

26.Jun.23 7:40 AM
By Shawn Highstraw
Photo Amazon


FTC sues Amazon over Prime subscription
Amazon has been sued by the U.S. regulator, the FTC, for allegedly enrolling customers in its Prime subscription service without their consent. The lawsuit also claims that the tech giant has made it difficult to cancel the subscription.

Amazon Prime offers customers benefits such as faster and free shipping for a fee. In the United States, Prime members pay an annual fee of approximately 150 dollar for these services, which constitute a significant portion of the company's revenue. The service has over 200 million subscribers worldwide.

"Amazon has misled people and enrolled them in Prime without their consent," said FTC Chair Lina Khan in a statement. "This has cost customers a lot of money."

According to the lawsuit, the FTC alleges that Amazon used manipulative and deceptive website designs, known as dark patterns, to entice consumers into signing up for automatically renewing Prime subscriptions.

In response, Amazon stated that customers value its subscription service and emphasized that it is clear and easy for customers to both sign up for and cancel a Prime membership. Amazon also expressed concern that the FTC filed a lawsuit "without notifying us."

This is not the first time the FTC has filed a complaint against Amazon. Recently, the company agreed to pay a settlement of nearly 29 million euros in two privacy cases. One case involved Ring video doorbells, and the other concerned the company's smart speaker, Alexa. Despite the settlement, Amazon did not admit any wrongdoing in these cases.

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