For utilising ‘deceptive’ methods to sign up people for Prime, Amazon is being sued by the Federal Trade Commission (FTC).
FTC Chair Lina M. Khan disclosed this in a press release on Wednesday.
The Federal Trade Commission filed a lawsuit against the technology giant, charging that the company willfully made it difficult for customers to cancel their subscriptions while working for years to sign them up for its Prime membership without their knowledge.
Customers who purchase Amazon Prime receive free two-day shipping as well as additional benefits like access to Prime Video and music streaming for a one-time fee of $139.
The FTC asserts that the technology giant purposefully made it difficult for Prime customers to quit their memberships, with the primary objective of the cancellation process being to prevent subscribers from doing so rather than to enable them to do so.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said Chair Lina M. Khan.
Additionally, according to the FTC, the company’s management slowed down or rejected modifications that would have made it simpler for customers to terminate their subscriptions “because those changes adversely affected Amazon’s bottom line.”