Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Technology

Technology

Amazon lawsuit scrutinizes US firms’ members-only programs

Creator: PASCAL ROSSIGNOL Creator: PASCAL ROSSIGNOL
Creator: PASCAL ROSSIGNOL Creator: PASCAL ROSSIGNOL

Listen to the article now

Amazon lawsuit scrutinizes US firms’ members-only programs. Amazon.com Inc. (AMZN.O) isn’t the only U.S. retailer accused of fraudulent membership sales.

Subscription programs at Walmart (WMT.N), Best Buy (BBY.N), Savage X Fenty, and Adore Me are under examination.

Many charge monthly fees for free shipping, tech support, and discounts. Euromonitor Inc. surveyed 37,720 Americans in 2022 and found that 30% were subscribed to a service, up from 20% in 2017.

The Seattle Federal Trade Commission sued Amazon. The FTC charged Amazon with deceiving “millions of consumers” into buying Prime subscriptions. Amazon’s sales are driven by U.S. Prime members’ $139 annual fee for free delivery.

Amazon “knowingly complicated the cancellation process for Prime subscribers who sought to end their membership,” the FTC complained. The complaint states that Amazon “substantially revamped its Prime cancellation process” for some users before the litigation.

Amazon, which began Prime in 2005 and has 170 million U.S. subscribers, will defend itself in court. Amazon revised its “two clicks” Prime cancellation process in Europe last year and in the U.S. in early 2023 to comply with E.U. consumer protection laws. Amazon said the old and new canceling processes follow the law.

William Kovacic, a professor at George Washington University Law School and former FTC commissioner, said the Amazon action aims “to make a point,” reform Amazon’s policies, and “develop a template for standards for the entire sector.”

Kathleen Benway, a former FTC Bureau of Consumer Protection chief of staff, said retailers should be “very concerned” that the FTC is taking action against auto-renewal terms, multi-step cancellation policies, and other common practices on online subscription platforms.

“This is the first time a court is looking at the adequacy of these types of disclosures and other practices that have become pretty common now,” she added.


Comment Template

You May Also Like

Business

Amazon has appointed Whole Foods CEO Jason Buechel to lead its global grocery operations, signaling a bold push to redefine the grocery industry. With...

Business

Amazon is transforming Prime Video to achieve profitability by 2025, focusing on live sports, integrating third-party channels, and diversifying revenue streams. Led by CEO...

Technology

Anthropic stated on Thursday that the advantages of California’s updated measure, which aims to control the development and deployment of artificial intelligence within the...

Business

By the year’s end, Taco Bell plans to have implemented AI ordering at hundreds of US sites, following two years of testing in a...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok