One of the best appointments that Joe Biden made is that of Lina Khan to head the Federal Trade Commission. She is a vigorous enforcer of anti-trust laws and unfair trade practices and the FTC has just announced a new lawsuit against the company for unfair practices after winning another lawsuit.
The FTC, the US agency charged with consumer protection, filed a federal lawsuit in Seattle, where Amazon is headquartered, alleging that the tech behemoth “ knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime” through a secret project internally called “Iliad”.
The lawsuit marks the first time the agency has brought Amazon to court since its chair, Lina Khan, took the helm in 2021. Khan, a former antitrust scholar, has been widely expected to take a harder line on tech firms that have for years enjoyed unabated growth and little regulation.
In its complaint, the FTC said Amazon used “manipulative, coercive or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions”.
It said the option to purchase items on Amazon without subscribing to Prime was more difficult in many cases. It also said that consumers were sometimes presented with a button to complete their transactions – which did not clearly state it would also enroll them into Prime.
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