The U.S. Federal Trade Commission on Wednesday charged Amazon for signing up millions of customers for its premium subscription Amazon Prime service without getting their permission.
Additionally, they said that the streaming service made it difficult for them to cancel.
Amazon was sued by the FTC in federal court in Seattle on the grounds that it “knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime.”
Amazon said in a statement that the FTC’s allegations were “false on the facts and the law.”
In an effort to improve competition and safeguard consumers, President Joe Biden’s administration has taken a number of measures, including the lawsuit, to restrain the excessive market power of Big Tech companies.
The FTC claimed that with an annual income of $25 billion, Amazon Prime is the largest membership service in the world.
It provides several savings, quick, free shipping on millions of things, access to movies, music, and television shows, among other advantages.
The majority of Amazon’s sales are generated by its $139 annual fee for Prime subscribers in the United States.
The success of Amazon’s other companies, such as its delivery service and Prime Video streaming service, depends on Prime, which has more than 200 million members globally.
“The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership.” Amazon stated in a statement.
The lawsuit was filed on Wednesday, the same day that Amazon revealed the dates for its major event, Prime Day