U.S. agency sues Amazon for deceiving consumers

WASHINGTON – The U.S. Federal Trade Commission has accused Amazon of misleading users into signing up for automatic renewal of its Amazon Prime service.

The agency has sought civil penalties and a permanent injunction to prevent Amazon from continuing these practices.

The FTC sued Amazon in federal court in Seattle on Wednesday, alleging the company knowingly deceived millions of consumers.

“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 statement.

The statement said the company has made it difficult for consumers to cancel their paid accounts.

Amazon has denied the FTC’s allegations.

This is the latest in a series of actions by the FTC against Amazon.

The FTC’s actions against Amazon are part of a broader effort by the Biden administration to crack down on major technology companies.

The FTC alleged that Amazon uses a manipulative, coercive interface that makes it difficult for users to cancel their prime subscriptions.

The agency also said Amazon uses techniques that are intentionally misleading or deceptive.

According to the FTC, Amazon Prime is the world’s largest subscription program with $25 billion in annual revenue.

Prime members in the U.S. pay $139 per year and are responsible for a large portion of Amazon’s revenue.

Worldwide, Prime has more than 200 million members.

Amazon had previously agreed to pay $25 million to settle allegations of violating children’s privacy rights.

The company had failed to delete records of Alexa virtual assistant technology at the request of parents and keep them longer than necessary.