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Excerpt from seekingalpha.com
Amazon (NASDAQ:AMZN) failed in its attempt to have a lawsuit from the U.S. Federal Trade Commission thrown out after a U.S. District judge in Seattle allowed the case to continue, agreeing with the FTC that the company used deceptive methods to lure in new Prime subscribers.
The e-commerce giant was sued by the FTC last June for making it difficult for Prime subscribers to cancel their membership, and for employing methods that resulted in accidental subscriptions. The FTC claims that the “nonconsensual enrollment” is so widespread and well-understood at Amazon (AMZN), internal documents are “littered” with references to “accidental signups.”
At the same time, the cancellation process was so convoluted, the FTC claims, it was referred to as the “Iliad Flow” within the company.
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