A federal judge has ruled that Amazon, the e-commerce giant, violated consumer protection law in its practices surrounding Prime subscriptions. This decision marks a significant development in the ongoing case brought by the Federal Trade Commission against the company.
U.S. District Judge John Chun found that Amazon improperly collected billing information from potential Prime subscribers before fully disclosing the terms of the service. This ruling represents a partial victory for the FTC in its broader case against Amazon’s subscription practices.
The FTC has accused Amazon of enrolling millions of customers in Prime without their explicit consent and making the cancellation process unnecessarily complex. These actions, if proven, would violate the Restore Online Shoppers’ Confidence Act, known as ROSCA.
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Chris Mufarrige, who heads the FTC’s bureau of consumer protection, stated that the decision “affirms that Amazon defrauded American consumers.” The agency has expressed its intention to seek restitution for affected customers.
The judge’s ruling also holds two Amazon executives potentially liable for any violations proven at trial. Amazon, for its part, has denied the accusations. A spokesperson for the company has not yet provided a comment on this latest development.
As the case proceeds to trial, Amazon will face limitations on its legal arguments, particularly in claiming that ROSCA does not apply to Prime signups. This ruling sets the stage for what could be a landmark case in consumer protection law.
