The Federal Trade Commission sued Amazon Wednesday alleging it duped “millions of consumers” into enrolling in Amazon Prime subscriptions without their knowledge and making it overly difficult to cancel.
The FTC has sued Amazon Prime for "duping" consumers into enrolling, and making it difficult to ... [+]
The lawsuit claims the e-commerce giant “sabotaged” consumers’ attempts to cancel Prime subscriptions, and tricked them into automatically renewing the service.
The FTC alleges Amazon used “manipulative, coercive, or deceptive” designs to confuse consumers who were trying to cancel the subscription, which offers a variety of incentives, including faster shipping and Amazon’s collection of movies and music.
The FTC has been investigating Amazon Prime’s sign-up and cancellation processes since March 2021.
Amazon shares fell more than 1% immediately after the lawsuit was filed.
Forbes reached out to Amazon for comment.
This is a breaking news story and will be updated.