Title: FTC Files Complaint Against Amazon for Coercing Consumers into Amazon Prime Subscriptions
Date: June 21, 2023
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 Amazon Prime service without their consent. The FTC filed a complaint in the Seattle District Court, alleging that Amazon knowingly tricked consumers into registering for auto-renewing Prime subscriptions through manipulative and deceptive user interface designs, commonly referred to as “dark patterns.”
According to the FTC, Amazon’s actions have not only frustrated users but also cost them a significant amount of money. Consumers who attempted to unsubscribe from the Prime program faced numerous obstacles and complicated procedures, making it difficult for them to cancel their subscriptions.
Amazon Prime offers subscribers a range of benefits, including fast and free delivery of millions of items, various discounts, and access to a vast library of movies, music, and TV series. In the United States, Prime members typically pay $139 per year and contribute significantly to Amazon’s sales volume. The service boasts over 200 million members worldwide.
The FTC’s complaint seeks a civil penalty against Amazon, although the specific amount has not been specified. Additionally, the Commission is requesting an injunction to prevent future violations by the company.
The FTC has been investigating Amazon’s Prime program opt-in and unsubscribe procedures since March 2021. Lina Khan, the chair of the FTC, emphasized that Amazon’s actions not only violated consumer trust but also resulted in financial losses for individuals.
This recent legal action by the FTC highlights the growing scrutiny surrounding Amazon’s business practices and policies. The company has faced criticism from multiple sources, with concerns raised about the ethics of its operations. The outcome of this complaint will be closely watched as it could have significant implications for Amazon’s future practices and the protection of consumer rights.
[Reporting by David Shepardson; French version by Kate Entringer]
prime video
Title: FTC Takes Legal Action Against Amazon for Unethical Amazon Prime Subscription Practices
Date: June 21, 2023
In a recent development, the U.S. Federal Trade Commission (FTC) has filed a complaint against Amazon.com, accusing the company of coercing consumers into subscribing to its paid Amazon Prime service without their consent. The FTC alleges that Amazon utilized manipulative and deceptive user interface designs, also known as “dark patterns,” to trick users into registering for auto-renewing Prime subscriptions.
According to the FTC, this unethical practice by Amazon has not only led to frustrated users but has also resulted in significant financial losses for consumers. Many individuals who tried to unsubscribe from the Prime program faced complicated procedures and obstacles, making cancellation difficult.
Amazon Prime provides users with a range of benefits, including fast and free delivery, discounts, and access to a vast content library. In the United States, Prime members typically pay $139 per year, and the service has garnered over 200 million members globally, contributing significantly to Amazon’s sales volume.
The FTC’s complaint seeks a civil penalty against Amazon, although the specific amount has not been disclosed. The Commission is also requesting an injunction to prevent future violations by the company.
This legal action by the FTC reflects the increasing scrutiny surrounding Amazon’s business practices and policies. The company has faced criticism from various sources, with concerns raised about the ethics of its operations. The outcome of this complaint will be closely monitored as it could have significant implications for Amazon’s future practices and the protection of consumer rights.
The FTC has been investigating Amazon’s opt-in and unsubscribe procedures for the Prime program since March 2021. Lina Khan, the chair of the FTC, stresses that Amazon’s actions not only violated consumer trust but also caused financial harm to individuals.
This development sheds light on the need for stricter regulations and oversight in the e-commerce industry to ensure that consumers are protected from coercive and deceptive practices. The outcome of this complaint will likely have far-reaching consequences for Amazon and may set a precedent for holding other companies accountable for similar actions.
[Reporting by David Shepardson; French version by Kate Entringer]
This is a significant move by the FTC to hold Amazon accountable for their alleged coercive practices, ensuring consumer rights are protected.