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FTC sues Amazon over Prime: The Federal Trade Commission (FTC) has taken Amazon to court this week, accusing the company of using deceptive tactics to push millions of people into Prime subscriptions and making it difficult for them to cancel, as per a report.FTC Takes Amazon to Court Over Prime PracticesThe trial, expected to last a month, centers on Prime, Amazon’s money-making subscription service that brought in more than $44 billion last year, as per a Gizmodo report.In court filings, the FTC said Amazon tricked customers into enrolling in Prime without their knowledge or consent. The agency alleged that Amazon buried price and renewal terms in fine print and used confusing language during checkout, which led shoppers to unknowingly sign up while seeking free shipping, according to the Gizmodo report.ALSO READ: Did Teen Mom star Jenelle Evans sell Kenleigh Heatwole’s personal information to dark web? Here’s what we knowFTC Says Prime Sign-Ups Were Misleading“Millions of consumers accidentally enrolled in Prime without knowledge or consent, but Amazon refused to fix this known problem, described internally by employees as an ‘unspoken cancer’ because clarity adjustments would lead to a drop in subscribers,” the FTC wrote.Live EventsWhen customers tried to cancel, the FTC said Amazon forced them through a long, multi-step process that employees internally referred to as “Iliad”, as per the report. The name referenced the Greek epic about a decade-long war, highlighting just how drawn-out the cancellation process could be.The FTC argued that some users were misled by messages that looked like final confirmations but were not, leaving them still subscribed.ALSO READ: IRS Schedule 1-A explained: How to claim tax breaks for tips, overtime, car loans, and seniorsAmazon Executives Also Named in LawsuitThe case does not only involve the company. Amazon executives Jamil Ghani, Neil Lindsay, and Russell Grandinetti were also named as defendants, as per the Gizmodo report. According to the FTC, Ghani and Lindsay approved changes that would have made enrollment clearer but rolled them back after seeing a drop in Prime sign-ups. Grandinetti was accused of dismissing concerns about accidental enrollments.Last week, Judge John H. Chun gave the FTC a preliminary win, ruling that Ghani and Lindsay would automatically be considered liable if Amazon is found guilty, according to the Gizmodo report.Amazon Denies WrongdoingAmazon has denied the allegations. A spokesperson said, “The bottom line is that neither Amazon nor the individual defendants did anything wrong – we remain confident that the facts will show these executives acted properly and we always put customers first,” as quoted in the report.FTC Says Amazon Violated Federal LawsThe FTC said Amazon’s practices violated Section 5 of the FTC Act, which bans unfair business practices, and the Restore Online Shoppers Confidence Act (ROSCA), which requires clear disclosures and simple cancellation options, as per the Gizmodo report.The trial marks Amazon’s first major battle with the FTC, though another antitrust case against the company is already scheduled for 2027.FAQsWhy is the FTC suing Amazon?The FTC says Amazon tricked people into Prime subscriptions and made cancellation too difficult.Who are the Amazon executives named in the case?Jamil Ghani, Neil Lindsay, and Russell Grandinetti are named as defendants.Add as a Reliable and Trusted News Source Add Now!
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