The Federal Trade Commission on Wednesday modified its grievance against Amazon alleging that its Prime sign-up and cancellation processes were "deceptive;" additionally, three senior executives were added as defendants. The additional claims states that Amazon's top executives, charged with managing Prime, disregarded warnings from employees that members were being signed up without prior authorization. Tim Doyle, Amazon spokesperson, questioned the FTC's decision to include the executives as defendants, stating that their action was "unwarranted under the facts and the law."
On Wednesday, the Federal Trade Commission (FTC) filed an amended complaint against Amazon for its "deceptive" Prime sign-up and cancellation processes, implicating three of its senior executives. The filing outlines how Amazon downplayed employee concerns of customers being automatically enrolled into the subscription service without their consent. The executives named in the complaint include Russell Grandinetti, SVP of international consumer, Prime boss Jamil Ghani, and Neil Lindsay, a senior vice president who was formerly responsible for Prime's technology and business operations. Emails included in the amended complaint suggest Amazon staff had pushed their executives to rectify the situation so customers would not be "tricked." Furthermore, the executives debated how the potential changes to the enrollment process would affect the company's performance since it relies heavily on Prime's subscription revenue. Amazon spokesperson Tim Doyle called the complaint "unwarranted," citing its "cherry-picked quotes" and "mischaracterizations." The FTC has in the past named executives in complaints, such as Mark Zuckerberg in the case against Meta, and Drizly's CEO in a security failure settlement. Reports indicate the FTC will likely submit its separate antitrust suit against Amazon as soon as this month.
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