Amazon accused of enrolling consumers into Prime service without consent: lawsuit
“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 prepared statement. “These manipulative tactics harm consumers and law-abiding businesses alike.”
In the past two years, the agency has been ramping up its enforcement against deceptive sign-up and cancellation tactics that could manipulate consumers into buying products or services they don’t want. In December, it said Epic Games Inc., the maker of the popular Fortnite video game, would pay $245 million in customer refunds for deceptive payment methods. In November, the telecom company Vonage settled a similar case for $100 million.
The lawsuit also comes as Amazon is facing heightened regulatory scrutiny as it moves to expand its e-commerce dominance and dip its toes into other markets, including groceries and health care.Some anti-monopoly groups celebrated the lawsuit on Wednesday shortly after the FTC’s announcement.
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