The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Amazon.com, accusing the online retailer of enrolling millions of consumers into its paid subscription service Amazon Prime without their consent and making it hard for them to cancel.
The FTC alleges that Amazon used deceptive practices such as pre-checked boxes, hidden text and misleading language to trick customers into signing up for Prime, which costs $119 a year and offers free shipping, video streaming and other benefits.
The agency also claims that Amazon made it difficult for customers to cancel their Prime membership by burying the cancellation option in multiple web pages, requiring them to click through several screens and confirm their choice multiple times.
“Amazon took customers’ money without their informed consent,” said FTC Bureau of Consumer Protection Director Samuel Levine in a statement. “This is a flagrant violation of the core principle that before you charge a consumer, you need to get their consent.”
The FTC is seeking a court order to stop Amazon’s alleged illegal conduct and to refund customers who were enrolled in Prime without their knowledge or consent.
Amazon denied the FTC’s allegations and said it would defend itself in court. “The facts show that Amazon’s Prime free trial program has been clear and transparent for more than a decade,” said an Amazon spokesperson in an email. “We have always made it easy for customers to cancel their free trial or membership at any time.”
The lawsuit is the latest action by the FTC against Amazon in recent weeks. Earlier this month, the agency sued Amazon for allegedly inflating prices and misleading consumers about discounts on its website. The FTC also launched an investigation into Amazon’s proposed acquisition of MGM Studios for $8.45 billion.
