Amazon collected payment information from Prime signups before all terms were clear; Judge John Chun said in a case over possible violations of online consumer protections brought by the United States Federal Trade Commission (FTC).
“Consumers misled”
The FTC accuses Amazon of using deceptive practices to sign up tens of millions of customers for Prime unsolicited. According to the regulator, the company intentionally made cancellation difficult, in violation of the Restore Online Shoppers Confidence Act (ROSCA).
Chris Mufarrige, head of the FTC’s consumer protection division, is pleased: “This decision confirms that Amazon misled American consumers by not disclosing all of Prime’s terms and conditions before collecting their payment information.”
The judge determined that two executives at Amazon could be held personally liable if the FTC can prove its allegations at trial. During the trial, Amazon may not argue that ROSCA does not apply to Prime enrollees. The company denies the allegations and declined to comment for now.
