Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Amazon (AMZN) is currently facing legal challenges after a U.S. judge ruled that the company violated consumer protection laws in its Prime membership enrollment process. The Federal Trade Commission (FTC) has accused Amazon of enrolling users without clear consent and complicating the cancellation process, which breaches the Restore Online Shoppers Confidence Act (ROSCA). This ruling is an early victory for the FTC, which is seeking to hold Amazon accountable and potentially compensate affected consumers.
The legal proceedings could have significant implications for Amazon’s business model, as Prime is a major revenue stream, generating $12.2 billion in the last reported quarter. Any restrictions on how Amazon signs up or retains Prime members could impact future growth. The case also underscores the increasing regulatory scrutiny faced by large tech companies in the U.S. and globally. Despite these challenges, Amazon’s stock maintains a Strong Buy consensus among analysts, with a projected upside potential of over 14%.