03:19 PM EDT, 05/29/2024 (MT Newswires) -- (Updates with Amazon ( AMZN ) response in the fifth paragraph.)

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.

"The FTC's claims are false on the facts and the law. The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership," an Amazon ( AMZN ) spokesperson said in a statement to MT Newswires. "As with all our products and services, we continually listen to customer feedback and look for ways to improve the customer experience, and we look forward to the opportunity to present the real facts in the case."

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