The daily business briefing: June 22, 2023

1. FTC accuses Amazon of tricking people into Prime subscriptions

The Federal Trade Commission on Wednesday filed a lawsuit accusing Amazon of enrolling customers in its Prime program without their consent. The complaint said Amazon "knowingly" used "dark patterns" to sign up new Prime members, then made it difficult for them to cancel their subscriptions. For example, the FTC said Amazon gave shoppers several options to subscribe to Prime during the checkout process, but made it confusing for those simply wishing to buy their items without subscribing. "Amazon tricked and trapped people into recurring subscriptions without their consent," FTC Chair Lina Khan said. Amazon spokesperson Heather Layman said the allegations were false. "The truth is that customers love Prime," she said.

The Verge

2. Powell tells lawmakers inflation fight has 'long way to go'

Federal Reserve Chair Jerome Powell said in his semiannual economic report to Congress on Wednesday that the central bank would have to hike interest rates more to bring down high inflation. The Fed paused its 15-month campaign to raise rates this month but signaled it expected two more hikes this year. Inflation is down from a peak annual rate of 9.1% a year ago, but remains above 4%. "The process of getting inflation down to 2% has a long way to go," he told the House Financial Services Committee. Some lawmakers have expressed concern higher rates will cost jobs. The S&P 500 fell 0.5% on Wednesday, its third straight day of losses, after Powell's remarks, and stock futures slipped again early Thursday.

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Bloomberg CNBC

3. Regulators approve lab-grown meat

The Agriculture Department on Wednesday approved the sale of laboratory-grown meat, a first. The decision will allow two California companies, Upside Foods and Good Meat, to sell chicken produced from animal cells. The two companies have been racing to be the first to sell "cell-cultivated" or "cultured" meat that doesn't come from slaughtered animals, a milestone in a push to reduce harm to animals as well as environmental damage from grazing, feed production, and animal waste. Dr. Uma Valeti, the chief executive and founder of Upside Foods, said in a statement that the regulatory approval was "a giant step forward towards a more sustainable future — one that preserves choice and life." The U.S. is the second country, after Singapore, to authorize lab-grown meat.

The New York Times The Associated Press

4. Report: Huawei and ZTE workers tracked at China spy facilities in Cuba

Workers from China's Huawei Technologies and ZTE were tracked at suspected Chinese spy facilities in Cuba during the Trump administration, The Wall Street Journal reported Wednesday, citing people familiar with the matter. The intelligence fueled suspicions that the Chinese technology companies might be involved in helping China enhance its spying capabilities on the communist-run Caribbean island, 100 miles south of Florida. Huawei and ZTE specialize in technology that could be used in such an operation, but both denied participating in such a project. Huawei called the accusations "groundless," saying it was "committed to full compliance with the applicable laws and regulations where we operate." ZTE said the Journal's reporting was "baseless."

The Wall Street Journal

5. Overstock.com wins auction for Bed Bath & Beyond digital assets

Overstock.com won a bankruptcy auction to buy Bed Bath & Beyond's brand name, intellectual property, business data, and digital assets for $21.5 million, according to court records filed Thursday. The price matched the Overstock stalking horse bid that set the floor at the auction, meaning nobody offered a higher bid. The deal would not keep any of the failed home goods retailer's stores open. The sale still must be approved at a Tuesday hearing. Software company Ten Twenty Four, which helps people maximize vacation rental revenue as Beyond Pricing, could win rights to the domain name if the Overstock purchase doesn't go through. JOWA Brands is a backup bidder for Bed Bath's Wamsutta sheets and towels label.

CNBC