The Federal Trade Commission (FTC) has recently taken legal action against Amazon, filing a lawsuit that claims the company deceived customers into signing up for its Amazon Prime program and made it difficult for them to cancel their subscriptions. The lawsuit alleges that Amazon utilized manipulative and deceptive design tactics known as “dark patterns” to persuade customers into subscribing, with these subscriptions automatically renewing.
Additionally, the FTC states that Amazon deliberately complicated the cancellation process to discourage customers from leaving and that the company’s leaders intentionally hindered changes to the process that would have made it easier for customers, as it would have negatively impacted profits. FTC Chair Lina Khan emphasizes the harm caused by Amazon’s maneuvering, which not only frustrates users but also results in significant financial losses. The FTC vows to vigorously protect consumers and businesses from “dark patterns” and other unfair practices within the digital market.
The FTC has filed the complaint in the Western District of Washington, and although it is partially redacted, the commission argues that this is unnecessary. According to a press release by the FTC, customers were often presented with multiple opportunities to join Amazon Prime, priced at $14.99 per month, during the online checkout process. Moreover, some customers encountered difficulties in purchasing items without subscribing to Prime. The FTC alleges that customers were sometimes misled by a button during the checkout process, which did not clearly indicate that they were agreeing to a Prime subscription.
Furthermore, the FTC asserts that Amazon’s cancellation process is intentionally designed to discourage customers from ending their subscriptions. The process involves multiple steps, including locating the “cancellation flow,” before being redirected to multiple pages that present offers to keep the subscription at a discounted price, opt-out of the auto-renewal feature, or simply not cancel.
Interestingly, the lawsuit reveals that Amazon internally referred to the cancellation process as the “Iliad,” drawing inspiration from Homer’s epic poem about the Trojan War, known for its length and challenging nature. The FTC alleges that Amazon’s notable executives were aware of this arduous process but failed to take significant action to address the issue. Moreover, Amazon is accused of attempting to hinder and delay the FTC’s investigation on multiple occasions.
The Hill has reached out to Amazon for a comment on the lawsuit, but no response has been received as of now.
In conclusion, the FTC’s lawsuit against Amazon sheds light on the company’s alleged deceptive tactics in enrolling customers into Amazon Prime and obstructing the cancellation process. The FTC aims to protect consumers and uphold fairness in digital markets, emphasizing the harmful consequences of manipulative practices.
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