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Amazon's Bid to Dismiss FTC Suit Denied by Federal Judge
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Amazon's Bid to Dismiss FTC Suit Denied by Federal Judge
May 29, 2024 7:18 AM

09:54 AM EDT, 05/29/2024 (MT Newswires) -- Amazon.com's ( AMZN ) attempt to dismiss a Federal Trade Commission suit accusing it of "deceptive" practices leading consumers into Amazon Prime subscriptions was denied by a federal Judge on Tuesday.

Judge John Chun of the US District Court for the Western District of Washington denied the online retailer's motion to dismiss FTC's complaint.

The lawsuit alleges that Amazon ( AMZN ) and three executives breached the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act by not adequately disclosing subscription terms and obtaining informed consent from consumers before enrolling them.

The complaint "sufficiently" alleges that "Amazon ( AMZN ) had actual or constructive knowledge" that some of those consumers were charged for several months before canceling their memberships, Judge Chun ruled.

Amazon ( AMZN ) did not immediately respond to MT Newswires' request for comment.

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