financetom
Business
financetom
/
Business
/
US judge rejects Amazon bid to get FTC lawsuit tossed over Prime program
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US judge rejects Amazon bid to get FTC lawsuit tossed over Prime program
May 28, 2024 5:50 PM

WASHINGTON (Reuters) -A U.S. judge in Seattle on Tuesday rejected Amazon.com's ( AMZN ) request to dismiss a Federal Trade Commission lawsuit that accuses the company of enrolling millions of consumers into its paid Amazon Prime service without their consent.

Attorneys for Amazon ( AMZN ) had urged U.S. District Judge John Chun to dismiss the FTC's claims. Amazon ( AMZN ) did not immediately respond to a request for comment.

The FTC lawsuit filed in June 2023 accusing 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.

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, which has sought civil penalties and a permanent injunction to prevent future violations.

The lawsuit is part of the Biden administration's ongoing regulatory and enforcement squeeze on big technology companies.

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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Ensign Group Q4 Adjusted Earnings, Revenue Rise; 2025 Guidance Issued
Ensign Group Q4 Adjusted Earnings, Revenue Rise; 2025 Guidance Issued
Feb 5, 2025
05:01 PM EST, 02/05/2025 (MT Newswires) -- Ensign Group ( ENSG ) reported Q4 adjusted earnings late Wednesday of $1.49 per diluted share, up from $1.28 a year earlier. Analysts polled by FactSet expected $1.48. Revenue for the quarter ended Dec. 31 rose to $1.13 billion from $980.4 million a year earlier. Analysts surveyed by FactSet expected $1.13 billion. For...
Allstate Q4 Earnings, Revenue Rise
Allstate Q4 Earnings, Revenue Rise
Feb 5, 2025
04:54 PM EST, 02/05/2025 (MT Newswires) -- Allstate ( ALL ) reported Q4 adjusted diluted earnings Wednesday of $7.67 per share, up from $5.82 a year earlier. Analysts polled by FactSet expected operating earnings of $6.27 per share. Revenue for the quarter ended Dec. 31 was $16.51 billion, up from $14.83 billion a year earlier. Analysts surveyed by FactSet expected...
First Industrial Realty Trust's Q4 FFO, Revenue Rise
First Industrial Realty Trust's Q4 FFO, Revenue Rise
Feb 5, 2025
05:02 PM EST, 02/05/2025 (MT Newswires) -- First Industrial Realty Trust ( FR ) reported Q4 funds from operations Wednesday of $0.71 per diluted share, up from $0.63 a year earlier. Analysts polled by FactSet expected $0.69. Revenue for the quarter ended Dec. 31 was $175.6 million compared with $157.3 million a year earlier. Analysts surveyed by FactSet expected $170.3...
DeepSeek and Trump: How hedge funds navigated a turbulent start to 2025
DeepSeek and Trump: How hedge funds navigated a turbulent start to 2025
Feb 5, 2025
LONDON/NEW YORK (Reuters) -Hedge funds started 2025 buoyed by choppier markets driven by uncertainty over new U.S. President Donald Trump's policies and a tumble in tech-darling Nvidia as Chinese artificial intelligence startup DeepSeek emerged, sources told Reuters. Bridgewater Associates, one of the world's biggest hedge funds, posted gains of 8.2% last month in its macro flagship fund Pure Alpha, beating...
Copyright 2023-2026 - www.financetom.com All Rights Reserved