Week 2 discussion-Facts about Amazon dilemma

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Facts about dilemma The dilemma that Amazon primarily faced over here was the fact that it either had the choice of being the leader in the industry by blocking other competitors or allowing competition to enter the market. Amazon did it from a point of view wherein they could block every other competitor, which would ultimately mean profits for them and, ultimately, lead to a monopoly wherein they could control prices. In the F.T.C. suit, Amazon is accused of using coercive, deceptive, and punitive tactics to unethically maintain its dominance in the online marketplace to enrich itself while harming millions of customers who shop at its online superstore (Rosenblatt, 2023). The company enrolled customers in the Prime subscription services without knowledge or consent. It also tricked them into automatically renewing the subscription and made the cancellation process complex to dissuade customers from opting out of the Prime subscription (Rosenblatt, 2023). It also reported that Amazon's top leadership objected to any proposal to change the system to allow customers to easily cancel their subscriptions. It was ethically wrong to trick people into subscription services without their and trapping them in the subscription services that cost them money with a subscription fee of $14.99 per month or $139 annually (Rosenblatt, 2023). Amazon made it difficult for Amazon to buy items in the store without subscribing to its Prime program and used 'repetition and color' to make customers enroll in Prime (McCabe, 2023). Moreover, trapping customers was ethically wrong thing to do since the consumer did not really know how Amazon was controlling the prices, and they could get the same product from some other E-commerce company that could provide the same product for lower prices. Amazon's subscription service was unethical because it treated customers as a means for achieving dominance in e-commerce rather than autonomous individuals with rational choices. In this case, 17 states and 17 state attorneys accused Amazon of manipulating the E-commerce

market and making themselves the largest player in the industry (Federal Trade Commission). As a result, The F.T.C., along with state partners, is asking a federal court for a lasting order that would stop Amazon from continuing its alleged unlawful behavior. This would also aim to open up competition by reducing Amazon's dominance in the market.

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