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FTC Sues Amazon Over ‘Deceptive’ Signup Efforts

By  |  June 21, 2023

The Federal Trade Commission filed a lawsuit against Amazon on Wednesday, claiming that the company misled millions of customers into subscribing for its Prime program and made it difficult for them cancel their membership.

The Wall Street Journal reported that the agency accused Amazon of violating the FTC Act and the Restore Online Shoppers’ Confidence Act by using deceptive design tactics called dark patterns to enroll consumers in Prime without their consent.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Khan said in a statement.

Amazon representatives did not respond to a comment request. The company’s shares experienced a decrease of more than 1% during morning trading.

Related: Amazon To Compete Against Shopify With “Buy With Prime”

The FTC launched an investigation into Amazon’s Prime program in March 2021, specifically regarding the sign-up and cancellation processes. The agency requested testimony from CEO Andy Jassy and founder Jeff Bezos, which Amazon deemed unduly burdensome. The FTC ultimately rejected Amazon’s argument.

The Prime program was launched in 2005 and has become a widely used subscription service with over 200 million members worldwide. It has been a profitable venture for Amazon, generating billions of dollars. The annual membership costs $139 and offers benefits such as free shipping and access to streaming content.

The lawsuit was filed in the US District Court for the Western District of Washington, alleging that Amazon leadership hindered efforts to simplify the process of canceling Prime, as such changes were deemed detrimental to Amazon’s financial performance.

According to the complaint, Amazon’s purchasing process presented challenges for customers who did not have Prime, and the button indicating completion of the transaction did not make clear that they would also be enrolled in a recurring subscription for Prime.

Meta’s $220 Million Fine in Nigeria Upheld by Competition Tribunal Meta's $220 Million Fine in Nigeria Upheld by Competition Tribunal

Meta’s $220 Million Fine in Nigeria Upheld by Competition Tribunal

By  |  April 27, 2025

Meta Platforms, the parent company of Facebook, has faced a significant setback in Nigeria as the country’s Competition and Consumer Protection Tribunal upheld a hefty fine imposed on the tech giant. The $220 million penalty was originally levied by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) last year for violating local consumer protection, data privacy, and protection laws. The fine comes after an appeal by Meta was dismissed by the tribunal on Friday.

According to Reuters, the FCCPC had accused Meta of discriminatory and exploitative practices that disproportionately impacted Nigerian consumers. The commission argued that Meta’s operations in Nigeria did not adhere to local regulations as rigorously as those in other jurisdictions with similar consumer protection and privacy frameworks. This perceived inequity led to the imposition of the fine last July.

Read more: Meta Lawyers Try to Undercut Instagram Co-Founder’s Damaging Testimony

The decision by the tribunal marks a significant moment in Nigeria’s regulatory efforts to hold multinational corporations accountable for their actions in the country. It also highlights the increasing scrutiny that global tech companies face in various markets regarding their adherence to local laws, particularly concerning consumer rights and data protection.

Per Reuters, Nigeria’s Competition and Consumer Protection Commission has been actively strengthening its enforcement of consumer protection laws, aiming to curb practices that undermine local regulations. The commission’s actions against Meta serve as part of its broader effort to ensure that companies comply with local norms and standards, particularly in the digital economy.

Source: Reuters