Washington – The Federal Trade Commission, which announced a case against Amazon’s retail signup and cancellation practices in June, has expanded the case now to name three Amazon executives in their personal capacity. It is unusual for the FTC to name individual executives in a case of this nature.
The FTC launched this case against Amazon for alleged practices around customer signup and cancellation for Amazon Prime, which offers free shipping and a range of services for an annual fee. The FTC is accusing the company of having a complicated procedure for customers to cancel, which involves six clicks to leave the popular service.
This further detail on the case was disclosed Wednesday as the Senate Commerce Committee held a hearing on new FTC nominees after two Republican commissioners recently resigned in protest over the politicized agenda led by the FTC chair.
The Computer & Communications Industry Association has advocated for competition in the tech industry for over 50 years.
In response to the developments in the FTC case regarding Amazon’s subscription, the following can be attributed to CCIA President Matt Schruers:
“At a moment when the public is confronted with rising prices everywhere, FTC Chair Khan is pursuing action against a retailer loved for quickly matching consumers to competitively priced products. Consumers of digital services are sophisticated enough to cancel a subscription in a few clicks, and second-guessing executives’ decisions about button color is not the best use of enforcement resources.”
