Amazon Violated Online Shopper Protection Law, Judge Rules Ahead of Prime Signup Trial
A U.S. District Court judge ruled on Wednesday that Amazon violated the Restore Online Shoppers Confidence Act (ROSCA) by gathering Prime subscribers' billing information before disclosing the service's terms.
Judge John Chun's decision is a partial win for the U.S. Federal Trade Commission, which has accused Amazon of deceptive practices to generate Prime subscriptions and thwart cancellation attempts. The FTC alleges that tens of millions of customers were signed up without their consent and faced complex cancellation methods.
The ruling puts Amazon at a disadvantage ahead of its trial with the FTC, according to experts. "This decision is a significant blow to Amazon's defense," said Markham Erickson, executive director of the International Council of Shopping Centers. "It suggests that the court has found merit in the FTC's allegations and will likely impact the company's ability to defend itself at trial."
The case centers on Amazon's practice of collecting customers' billing information before disclosing Prime's terms, which the FTC argues is a violation of ROSCA. The law requires online retailers to clearly disclose their terms and conditions before obtaining payment information.
Amazon has maintained that its practices are lawful and transparent, but the judge's ruling suggests otherwise. "We are disappointed in this decision and will continue to defend ourselves against these allegations," an Amazon spokesperson said.
The FTC's case against Amazon is part of a broader effort to protect online consumers from deceptive practices. The agency has been pushing for greater transparency and accountability from online retailers, particularly those that use complex cancellation methods to retain customers.
The trial is set to begin soon, with the judge's ruling likely to have significant implications for the outcome. "This decision sets the stage for a potentially damaging verdict against Amazon," said Erickson. "We expect the company to continue fighting these allegations, but it will be an uphill battle."
In related news, the FTC has been pushing for greater transparency from online retailers in recent years, with several major companies facing similar allegations of deceptive practices.
Background:
The Restore Online Shoppers Confidence Act (ROSCA) was enacted in 2010 to protect online consumers from deceptive practices. The law requires online retailers to clearly disclose their terms and conditions before obtaining payment information.
Key Players:
U.S. Federal Trade Commission: Accusing Amazon of deceptive practices
Judge John Chun: Ruling that Amazon violated ROSCA
Markham Erickson, executive director of the International Council of Shopping Centers: Commenting on the decision's impact on Amazon's defense
Next Developments:
The trial is set to begin soon, with the judge's ruling likely to have significant implications for the outcome. The FTC will continue to argue that Amazon's practices are deceptive and violate ROSCA, while Amazon will defend itself against these allegations.
*Reporting by Yro.*
