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FTC targets companies over deceptive conduct against consumers

On Thursday, Amazon agreed to pay $2.5 billion to settle FTC allegations that it misled Prime users and knowingly made it difficult for users to cancel the service.
FTC targets companies over deceptive conduct against consumers
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The Federal Trade Commission is taking aim at companies it says are using deceptive methods against consumers.

On Thursday, Amazon agreed to pay $2.5 billion to settle FTC allegations that it misled Prime users and knowingly made it difficult for users to cancel the service.

Amazon said it settled to resolve the case quickly, but the company admitted no wrongdoing.

The settlement came just days after its trial began this week.

Adam Kovacevich is the founder and CEO of Chamber of Progress, a center-left tech industry association. He says this case could have been settled sooner.

"I think it's a win for the FTC," Kovacevich said. "This is the largest settlement they've ever done of this kind."

"I think it's good that the FTC is policing unfair subscriptions, but this case should have never been brought to trial."

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Former FTC Chair Lina Khan called the settlement a "drop in the bucket for Amazon" and "a big relief for the executives who knowingly harmed their customers."

The FTC also has active lawsuits against Adobe and Uber, each accused of making their subscription services difficult to cancel.

Paul Steidler is with the Lexington Institute, a conservative think-tank. He says the FTC should be focusing on other issues.

People can make these decisions on their own. They can cancel this stuff on their own," he said.

"[The FTC] should concentrate on consumer fraud, which is rising and a big problem throughout all sectors of the country."

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