The Federal Trade Commission (FTC) has filed a lawsuit against Amazon, accusing the company of deceiving customers into signing up for its Prime program and making it difficult for them to cancel. The FTC alleges that Amazon used deceptive tactics, known as “dark patterns,” to push customers into enrolling in Prime without their consent. The complaint states that purchasing items on Amazon without enrolling in Prime was more difficult than making a purchase without subscribing. This not only frustrated users but also cost them significant money.
Amazon Prime, launched in 2005, offers customers free two-day shipping, music and video streaming, and other exclusive perks for a monthly fee of $14.99 or an annual fee of $139. There are approximately 200 million Prime members worldwide, with 150 million in the US.
The FTC’s lawsuit claims that Amazon deliberately made it difficult for Prime members to cancel their membership by slowing down or rejecting changes to the interface that would have simplified the process. Customers were sometimes presented with a button to complete their transactions, and it remains unclear if clicking on it simultaneously enrolled them in Prime. The FTC alleges that these actions had a negative impact on Amazon’s bottom line.
FTC Chair Lina Khan stated that the agency has multiple allegations supporting the most recent complaint against Amazon. She also accuses the company of attempting to delay the FTC’s investigation. As part of the investigation, Khan required Amazon owner Jeff Bezos and CEO Andy Jassy to testify on the company’s Prime practices.
Amazon has responded to the FTC’s claims, stating that they are false on both factual and legal grounds. The company looks forward to presenting its case in court. The FTC, chaired by Lina Khan, has been critical of Big Tech companies such as Amazon, Meta, and Apple since Khan assumed her position in June last year.
Earlier this month, the FTC announced a $5.8 million settlement with Amazon over privacy violations related to its Ring doorbell camera unit. Amazon also agreed to pay $25 million to settle allegations of violating children’s privacy rights. These settlements are part of the FTC’s ongoing efforts to hold Big Tech accountable for prioritizing profits over privacy.
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