The Federal Trade Commission (FTC) filed a lawsuit against Amazon on June 21, 2023, alleging that the company used deceptive techniques to sell its Prime subscription service.
The FTC’s complaint alleges that Amazon misled consumers about the benefits of Prime, including the availability of free two-day shipping and the ability to stream movies and TV shows. The complaint also alleges that Amazon failed to disclose that Prime members would be charged more for certain products than non-members.
The FTC is seeking a court order that would require Amazon to stop its deceptive practices and to pay refunds to consumers who were misled.
The FTC’s Complaint
The FTC’s complaint alleges that Amazon engaged in a number of deceptive practices in connection with its Prime subscription service. These practices include:
– Misrepresenting the availability of free two-day shipping. Amazon told consumers that they would receive free two-day shipping on all eligible Prime items, but the complaint alleges that this was not always the case. In some cases, Amazon would charge Prime members for shipping, even though the items were eligible for free shipping.
– Failing to disclose that Prime members would be charged more for certain products. Amazon did not disclose to consumers that they would be charged more for certain products if they were Prime members. For example, Amazon charged Prime members more for AmazonBasics products than non-members.
– Making it difficult for consumers to cancel their Prime subscriptions. Amazon made it difficult for consumers to cancel their Prime subscriptions. The complaint alleges that Amazon required consumers to call a customer service representative to cancel their subscriptions, and that the customer service representatives were often unhelpful and made it difficult for consumers to cancel their subscriptions.
=====
