The Federal Trade Commission (FTC) has expanded its investigation into Amazon, naming three high-level executives in an amended complaint regarding the company's Prime subscription tactics. The lawsuit, filed on September 20, 2023, includes internal emails that suggest these executives were aware of the deceptive practices involved in enrolling consumers into Prime without their consent and making it difficult for them to cancel their subscriptions.
FTC Chair Lina M. Khan had previously accused Amazon in June of using misleading tactics to lure consumers into recurring subscriptions without clear consent. The updated lawsuit emphasizes the FTC's commitment to protecting Americans from deceptive behaviors in the digital landscape. Khan stated that these actions not only harm users but also create unfair competition for businesses operating ethically.
The lawsuit specifically mentions Neil Lindsay, Russell Grandinetti, and Jamil Ghani, who are key figures in Amazon's Prime program. Lindsay and Grandinetti hold senior vice president positions, while Ghani is a vice president overseeing the program. Internal communications revealed in the lawsuit show that both the company and these executives were aware of the issues surrounding involuntary Prime sign-ups and complicated cancellation procedures.
Despite being aware of these problems, the executives allegedly chose not to make any changes. The lawsuit claims that they even hindered improvements to the user interface designed to simplify the subscription and cancellation processes because they feared it would negatively impact Amazon's profitability. Internal documents also revealed that Amazon's convoluted Prime cancellation procedure was internally referred to as "Iliad," after Homer's lengthy tale of the Trojan War.
The FTC's amended complaint against Amazon highlights the alleged misconduct of these high-level executives and their involvement in the deceptive practices surrounding Prime subscriptions. As the legal battle continues, it remains to be seen how Amazon will respond to these new allegations and what consequences it may face if found guilty of the FTC's claims.
