WASHINGTON, May 29 (Reuters) - A U.S. judge in Seattle
on Tuesday rejected Amazon.com's ( AMZN ) request to dismiss a
Federal Trade Commission (FTC) lawsuit that accuses the company
of enrolling millions of consumers into its paid Amazon Prime
service without their consent.
The lawsuit is part of the Biden administration's ongoing
regulatory and enforcement squeeze on big technology companies.
Attorneys for Amazon ( AMZN ) had urged U.S. District Judge John Chun
to dismiss the FTC's claims. Amazon ( AMZN ) said Wednesday, the "FTC's
claims are false on the facts and the law... We look forward to
the opportunity to present the real facts in the case."
The FTC declined to comment.
The FTC lawsuit filed in June 2023 accused the retailer of
deceptive practices. It argued Amazon ( AMZN ) made it hard to cancel and
knew that a percentage of consumers accidentally signed up for
Prime and that some consumers were charged for multiple months
before they canceled their memberships.
Previously, Amazon ( AMZN ) urged Chun to dismiss the FTC lawsuit,
arguing the company "prominently and repeatedly" disclosed key
terms - including price and automatic renewal - to Prime
customers. Amazon ( AMZN ) also accused the FTC of seeking to punish the
company through "undefined concepts" such as "manipulative"
website designs.
Amazon ( AMZN ) used "manipulative, coercive or deceptive
user-interface designs known as 'dark patterns' to trick
consumers into enrolling in automatically renewing Prime
subscriptions," the FTC said in its lawsuit, which has sought
civil penalties and a permanent injunction to prevent future
violations.
In a separate lawsuit, the FTC in September accused Amazon ( AMZN )
of violating U.S. antitrust law in business practices that
restrict merchants from offering lower prices than Amazon's ( AMZN ).
That case is also pending in Chun's Seattle court and set for
trial in October 2026.
The FTC's Prime lawsuit said Amazon ( AMZN ) "under substantial
pressure" from the FTC changed its cancellation process in
April, before the agency filed its lawsuit. The complaint said
"Amazon ( AMZN ) still requires five clicks on desktop and six on mobile
for consumers to cancel from Amazon.com ( AMZN )."
A 10-day non-jury trial in the case is scheduled for
February 2025.