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 >
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
China pharma firms turn to local reagent suppliers to cut costs and delivery times
China pharma firms turn to local reagent suppliers to cut costs and delivery times
Aug 13, 2025
SHANGHAI (Reuters) -Pharmaceutical research and development firms in China are increasingly interested in procuring critical supplies known as reagents from local manufacturers, industry executives and managers said, as they seek to cut costs and delivery times. Western reagent suppliers including U.S.-based Thermo Fisher Scientific and Germany's Merck have profited in the world's second-largest pharmaceutical market from the compounds used in lab...
FOCUS-China pharma firms turn to local reagent suppliers to cut costs and delivery times
FOCUS-China pharma firms turn to local reagent suppliers to cut costs and delivery times
Aug 13, 2025
* Western manufacturers like Thermo Fisher, Merck ( MRK ) are major reagent suppliers in China * Import tariffs, access concerns leading to more requests to Chinese manufacturers - executives * Merck ( MRK ) building factory in China closer to customers, Roche expanding a facility By Andrew Silver SHANGHAI, Aug 14 (Reuters) - Pharmaceutical research and development firms in...
XAI co-founder Babuschkin departs to launch AI safety investment firm
XAI co-founder Babuschkin departs to launch AI safety investment firm
Aug 13, 2025
(Reuters) -Igor Babuschkin, a co-founder of Elon Musk's artificial intelligence startup xAI, said on Wednesday that he has left the company and plans to launch an investment firm focused on AI safety research. Musk launched xAI in 2023 to challenge Big Tech's AI push, accusing industry leaders of excessive censorship and lax safety standards. Today was my last day at...
Copyright 2023-2026 - www.financetom.com All Rights Reserved