Amazon Faces Legal Challenges Over Prime Billing Practices

Amazon is facing legal scrutiny as a U.S. judge ruled it violated consumer laws by collecting billing information before disclosing Prime terms. The FTC accused Amazon of deceptive practices in its subscription processes. The decision could impact Amazon significantly during the trial.

Amazon's legal troubles have deepened following a federal judge's ruling that the company violated consumer protection laws by gathering billing information from Prime subscribers without disclosing service terms.

This partial win for the Federal Trade Commission (FTC) against the retail giant highlights allegations of deceptive practices aimed at boosting Prime subscriptions, as Amazon is accused of tricking customers into the service and making cancellation difficult.

The court's decision implicates two Amazon executives for potential liability if FTC's claims hold during trial. Despite the ruling, Amazon denies wrongdoing, maintaining that its practices were proper and customer-focused.

(With inputs from agencies.)