A U.S. judge on Wednesday sided with the Federal Trade Commission in its lawsuit against Amazon (NASDAQ:AMZN), ruling that the company violated consumer protection law when signing up customers for its Prime subscription service.
Judge John Chun found that Amazon breached the Restore Online Shoppers’ Confidence Act by collecting payment information before adequately disclosing the terms of Prime.
The court also said Amazon made it unreasonably difficult for consumers to cancel, strengthening the FTC’s case that the company engaged in deceptive practices.
The ruling prevents Amazon from arguing at trial that the law does not apply to Prime sign-ups and leaves two executives potentially liable if violations are proven. The FTC has accused the retailer of enrolling tens of millions of users without proper consent.
Source :
https://www.investing.com/news/stock-market-news/us-judge-rules-against-amazon-in-ftc-prime-case-ahead-of-trial-4243778
