Amazon enrolled customers in Prime without consent, made it hard to cancel, FTC says in lawsuit
FTC alleges Amazon used so-called 'dark patterns' to prevent users from unsubscribing from Prime
The Federal Trade Commission on Wednesday accused online retail giant Amazon of underhanded practices to keep customers enrolled in its Prime program, in a complaint filed in federal court.
The FTC is accusing Amazon of intentionally manipulating consumers into subscribing to Amazon Prime via "coercive or deceptive user-interface designs" known as "dark patterns."
"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said.
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Signage outside the Federal Trade Commission (FTC) headquarters in Washington, D.C. The FTC has accused Amazon of manipulating consumers into subscribing to its Prime service. The commission also asserts the company used "dark patterns" keep users fr (Ting Shen/Bloomberg via Getty Images / Getty Images)
She added, "These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 130.15 | +5.32 | +4.26% |
The FTC also claims Amazon intentionally complicated the process for canceling Prime subscriptions, exerting great effort to stop consumers from ending their payments.
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"During Amazon’s online checkout process, consumers were faced with numerous opportunities to subscribe to Amazon Prime at $14.99/month. In many cases, the option to purchase items on Amazon without subscribing to Prime was more difficult for consumers to locate," the FTC wrote in a press statement.
"In some cases, the button presented to consumers to complete their transaction did not clearly state that in choosing that option they were also agreeing to join Prime for a recurring subscription," the statement added.
The commission claims Amazon's use of dark patterns to manipulate its customers is a violation of both the FTC Act and the Restore Online Shoppers’ Confidence Act.
Amazon flatly rejected the allegations in a statement to FOX Business.
"The FTC’s claims are false on the facts and the law. The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership. As with all our products and services, we continually listen to customer feedback and look for ways to improve the customer experience, and we look forward to the facts becoming clear as this case plays out," an Amazon spokesperson told FOX Business.
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Employees walk through a lobby at Amazon's headquarters in Seattle, Washington. Amazon is accused of violating both the FTC Act and the Restore Online Shoppers’ Confidence Act through its use of dark patterns to manipulate consumers. (AP Photo/Elaine Thompson, File / AP Newsroom)
The spokesperson continued, "We also find it concerning that the FTC announced this lawsuit without notice to us, in the midst of our discussions with FTC staff members to ensure they understand the facts, context, and legal issues, and before we were able to have a dialog with the Commissioners themselves before they filed a lawsuit. While the absence of that normal course engagement is extremely disappointing, we look forward to proving our case in court."
FTC Bureau of Consumer Protection staff attorneys Jonathan Cohen, Olivia Jerjian, Max Nardini and Evan Mendelson are handling the case.
The case was filed in the U.S. District Court for the Western District of Washington.
FOX Business has reached out to Amazon for comment.
