The tech giant has also faced other lawsuits accusing its Prime cancelation process of being too complicated. Last year, Amazon accused the FTC of harassing its executives, including founder Jeff Bezos, as the agency sought to get the company’s top brass to testify as part of the probe. and Amazon have traded barbs for over the investigation. Khan, 34, burst onto the antitrust scene in 2017 with her massive scholarly work as a Yale law student, “Amazon’s Antitrust Paradox.” In 2021, Amazon asked unsuccessfully that she remove herself from separate antitrust investigations into its business, arguing that her public criticism of the company’s market power before she joined the government makes it impossible for her to be impartial. The group, which counts Amazon as one of its members, also pointed to Khan’s prior criticism of the company, and accused her of using the lawsuit “to attack American businesses she doesn’t like.” Congress must engage in robust oversight to rein in the FTC by cutting funding and investigating its ethical lapses and abuse of power.” “It is abundantly clear that the FTC is a runaway agency in need of greater oversight. “The complaint is that Amazon encourages people to use Amazon Prime – this is like going after Kroger for promoting its rewards program or Costco for its membership club,” Carl Szabo, the vice president and general counsel of the tech industry group NetChoice, said in a statement. Some anti-monopoly groups celebrated the lawsuit shortly after the FTC’s announcement, while others called it absurd. The lawsuit also comes as Amazon is facing heightened regulatory scrutiny as it moves to expand its e-commerce dominance and dip its toes into other markets, including groceries and health care. “While the absence of that normal course engagement is extremely disappointing, we look forward to proving our case in court,” she said. Layman, the Amazon spokesperson, said the company found it “concerning” the FTC filed the lawsuit without notifying Amazon, which was in discussion with agency staffers about Prime. In November, the telecom company Vonage settled a similar case for $100 million. In December, it said Epic Games Inc., the maker of the popular Fortnite video game, would pay $245 million in customer refunds for deceptive payment methods. In the past two years, the agency has been ramping up its enforcement against deceptive sign-up and cancellation tactics that could manipulate consumers into buying products or services they don’t want. It also accused the company of attempting to hinder the agency’s investigation into Prime, which began in 2021, in several instances. In a news release announcing the lawsuit, the FTC said though its complaint is significantly redacted, it contains “a number of allegations” that backs up its accusations against Amazon. In the first three months of this year, Amazon reported it made $9.6 billion from subscriptions, a 17% jump from the same period last year. Launched in 2005, Prime has more than 200 million members worldwide who are entitled to perks such as free delivery, returns and the streaming service Prime Video. “The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership.” “The FTC’s claims are false on the facts and the law,” Amazon spokesperson Heather Layman said in a statement. The FTC argued that Amazon’s practices violated the FTC Act and another law called the Restore Online Shoppers’ Confidence Act, which Amazon disputed. ![]() “These manipulative tactics harm consumers and law-abiding businesses alike.” “Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Khan said in a prepared statement.
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