US federal judge rules against Amazon in FTC case
It was found that Amazon violated consumer protection laws by misleading prime subscribers during enrollment.
US federal judge John Chun ruled that Amazon violated US consumer protection laws by collecting billing information from Prime subscribers before fully disclosing the service’s terms.
The ruling bolsters the Federal Trade Commission (FTC) as it prepares for a high-profile trial next week over allegations that Amazon used manipulative ‘dark patterns’ to enrol millions of consumers without their informed consent.
The FTC alleges Amazon’s signup process obscured recurring charges, misleading customers into subscriptions they did not intend to purchase. Judge Chun rejected Amazon’s claims that its disclosures were sufficient, finding instead that the company prioritised speed over transparency, resulting in unintended enrollments during checkout.
This case is part of the FTC’s broader effort to rein in Big Tech’s dominance and protect consumers. Amazon Prime, with over 200 million subscribers globally, is a critical part of the company’s growth strategy, offering perks like free shipping and streaming services.
The upcoming trial will focus on whether Amazon deliberately made cancelling Prime difficult, a tactic the FTC compares to a ‘roach motel’ where it’s easy to sign up but hard to leave. Legal experts say the case could set important precedents for the subscription services industry-wide.
Amazon denies wrongdoing and vows to fight the allegations, but the judge’s pre-trial rulings limit its ability to dismiss key FTC claims. The outcome could have wide-reaching implications for how online platforms handle subscriptions and consumer protections moving forward.
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