Amazon is in (federal) trouble

JURISDICTION AND VENUE

9. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345.

10. Venue is proper in this District under 28 U.S.C. § 1391(b)(2), (b)(3), (c)(1), (c)(2), (c)(3), and (d), and 15 U.S.C. § 53(b).

PLAINTIFF

11. The FTC is an independent agency of the United States Government created by the FTC Act, which authorizes the FTC to commence this district court civil action by its own attorneys. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC also enforces ROSCA, 15 U.S.C. §§ 8401-8405, which prohibits the sale of goods or services on the Internet through negative option marketing without meeting certain requirements for disclosure, consent, and cancellation to protect consumers. A negative option is an offer in which the seller treats a consumer’s silence—i.e., their failure to reject an offer or cancel an agreement—as consent to be charged for goods and services. 16 C.F.R. § 310.2(w).

DEFENDANT

12. Defendant Amazon transacts and has transacted business in this District and throughout the United States. It is one of the world’s largest online retailers, and is headquartered in Seattle, Washington, with its principal place of business at 410 Terry Avenue North, Seattle, Washington 98109.

13. At all times relevant to this Complaint, acting alone or in concert with others, Amazon advertised, marketed, distributed, or sold a paid subscription service, Prime, that gives subscribers throughout the United States access to additional services otherwise unavailable or available only at an additional charge to other consumers. Among other things, these premium services include expedited “free” delivery of merchandise from Amazon’s vast online marketplace, streaming content, and grocery delivery.

COMMERCE

14. At all times relevant to this Complaint, Amazon has maintained a substantial course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44.