WASHINGTON, D.C. – On Wednesday, it was reported that the Federal Trade Commission has filed a lawsuit against the tech firm Amazon, claiming that its Prime subscription has “tricked” unwitting consumers by offering lower prices and faster delivery for customers who sign up for the service. The suit claims the company has “trapped” customers into Prime subscriptions.
Yaël Ossowski, deputy director of the Consumer Choice Center reacted to the lawsuit:
“Consumers know they’re getting a myriad of benefits with their Prime subscription they can cancel at anytime, whether that’s faster delivery, cheaper prices, or bundled services like data storage and content streaming. That’s what consumers want.
“That the FTC would waste their resources going after an innovative company that consistently offers value for consumers reveals more about the agency’s political grudge than any perceived harm to consumers. Consumers have overwhelmingly had their welfare increased because of Amazon’s products and services.
“Behind the U.S. military, Amazon is the most favorable institution in the country, mainly because millions of consumers have had experience with Amazon’s platform, have been employed by the company, or have used their services in any way,” said Ossowski.
“It is well known FTC Chair Lina Khan has spent her career trying to build an antitrust lawsuit against Amazon, as is revealed in her 2017 article on “Amazon’s Antitrust Paradox”, but those efforts fall flat with consumers who benefit and appreciate their services.”
“Consumers have voted with their wallets when it comes to Amazon’s services, including Amazon Prime. That an agency of the federal government would spend valuable time and resources trying to punish a company for offering too many affordable products and services in a unique way only seems laughable,” added Ossowski.
The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva, Lima, Brasilia, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.
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