FTC Files Complaint Against Amazon for Coercing Consumers into Amazon Prime Subscriptions
WASHINGTON, June 21 (Reuters) – The U.S. Federal Trade Commission (FTC) has taken legal action against Amazon.com, accusing the e-commerce giant of coercing millions of consumers into subscribing to its paid service, Amazon Prime, without their consent. The FTC also alleges that Amazon made it difficult for users to unsubscribe from the service.
The complaint, filed in Seattle District Court, accuses Amazon of knowingly tricking millions of consumers into registering for Amazon Prime without their knowledge. The FTC seeks a civil penalty against Amazon, although the specific amount has not been specified, as well as an injunction to prevent future violations.
According to the FTC, Amazon utilized manipulative and deceptive user interface designs, known as “dark patterns,” to deceive consumers into signing up for auto-renewing Prime subscriptions. Amazon Prime offers subscribers fast and free delivery of millions of items, various discounts, and access to movies, music, and TV series, among other benefits.
In the United States, Prime members typically pay $139 per year and contribute significantly to Amazon’s sales volume. Globally, Amazon Prime boasts over 200 million members.
The FTC has been investigating Amazon’s Prime program opt-in and unsubscribe procedures since March 2021. Lina Khan, chair of the FTC, expressed concern over Amazon’s actions, stating, “Amazon tricked people into buying recurring subscriptions without their consent, which not only frustrated users but also cost them a lot of money.”
The complaint highlights that consumers who attempted to unsubscribe from the Prime program faced numerous steps to do so, indicating a deliberate effort by Amazon to make the process challenging.
This legal action by the FTC against Amazon underscores the importance of transparency and consumer consent in subscription services. The outcome of the case will have significant implications for the e-commerce industry and its practices.
(Reported by David Shepardson; French version by Kate Entringer)
How did Amazon allegedly coerce consumers into signing up for Amazon Prime without their consent?
FTC Takes Legal Action Against Amazon for Coercing Consumers into Amazon Prime Subscriptions
The U.S. Federal Trade Commission (FTC) has filed a complaint against Amazon.com, accusing the e-commerce giant of coercing millions of consumers into signing up for its paid service, Amazon Prime, without their consent. The FTC also alleges that Amazon made it difficult for users to cancel their subscriptions.
The complaint, filed in Seattle District Court, claims that Amazon knowingly deceived consumers into registering for Amazon Prime without their knowledge. The FTC is seeking a civil penalty against Amazon, along with an injunction to prevent such violations in the future.
The FTC alleges that Amazon used manipulative and deceptive user interface designs, referred to as “dark patterns,” to trick consumers into signing up for auto-renewing Prime subscriptions. Amazon Prime offers a range of benefits including fast and free delivery, discounts, and access to entertainment content.
In the United States, Prime members pay $139 per year, contributing significantly to Amazon’s sales. Globally, Amazon Prime has over 200 million members.
The FTC has been investigating Amazon’s opt-in and unsubscribe procedures for the Prime program since March 2021. Lina Khan, chair of the FTC, expressed concern over Amazon’s actions, stating, “Amazon tricked people into buying recurring subscriptions without their consent, causing frustration and financial losses.”
The complaint highlights that consumers faced numerous hurdles when trying to unsubscribe from the Prime program, suggesting that Amazon intentionally made the process challenging.
This action by the FTC emphasizes the importance of transparency and consumer consent in subscription services. The outcome of the case will have significant implications for the e-commerce industry and its practices.
(Reported by David Shepardson; French version by Kate Entringer)
The FTC’s complaint against Amazon for coercing consumers into Amazon Prime is a much-needed step towards ensuring fair and transparent business practices. Companies should prioritize transparency and respect consumers’ choices, rather than using coercive tactics to push their own agendas. Hoping for a positive outcome that protects consumer rights.
This article sheds light on the concerning manner in which Amazon has allegedly coerced consumers into subscribing to Amazon Prime. It is essential for the FTC to thoroughly investigate this matter to ensure consumer rights are protected.