The Federal Trade Commission (FTC) is initiating distinct legal proceedings against Amazon for misleading customers about Prime and against Ticketmaster for conspiring with ticket resellers.
### Amazon Charged with Misleading 40 Million Subscribers
A legal case brought by the FTC against Amazon is scheduled for trial this week, with the firm accused of misleading or confusing purchasers. The Wall Street Journal indicates that Amazon is claimed to have misled nearly 40 million of its 200 million subscribers.
The FTC asserts that Amazon deceived individuals into enrolling in its Prime service without their awareness or consent, obscuring information regarding billing and the terms of free trials. The agency contends that Amazon developed a convoluted process for canceling subscriptions, dubbed “Iliad,” referencing the protracted Trojan War in Homer’s tale. Several individual Amazon executives are also included as defendants in the case.
The FTC states that users must navigate four web pages and select from 15 options to cancel their Prime subscription. However, Amazon refutes these claims, insisting that it has consistently been clear about Prime’s terms and offers uncomplicated cancellation methods.
This case is part of a larger initiative targeting technology giants that facilitate subscriptions while complicating cancellations. Adobe has faced similar allegations concerning locking users into subscriptions and utilizing hidden pricing techniques.
The result of the Amazon case is viewed as a pivotal test; a defeat for the company could lead other tech businesses to rethink their subscription models.
### Ticketmaster Charged with Collaborating with Resellers
In a separate case, the FTC, along with seven U.S. states, has launched a lawsuit against Live Nation, Ticketmaster’s parent company, for allegedly collaborating with online ticket resellers for profit.
The lawsuit claims that Ticketmaster knowingly enabled brokers to acquire tickets in bulk, which were then resold at substantial markups on Ticketmaster’s secondary marketplace. The FTC asserts that Ticketmaster was aware that resellers frequently bypassed its security protocols to execute these bulk purchases. The company benefits multiple times from these resales, earning fees at the initial sale and additional charges from both buyers and sellers during resale. From 2019 to 2024, Ticketmaster is reported to have garnered $16.4 billion in fees, as cited by the FTC.
Internal communications from the company imply that it consciously disregarded these bulk purchases, raising further questions about its business practices. Ticketmaster has previously encountered accusations of utilizing deceptive pricing strategies.
### Conclusion
Both cases illustrate the FTC’s growing examination of major corporations and their operational methods, especially within the technology and entertainment industries. The results of these lawsuits could significantly influence how these firms function and how consumers interact with their services.
