The Federal Trade Commission (FTC) has taken legal action against Amazon, accusing the company of employing deceptive tactics in its Prime sign-up and cancellation process, CNBC reports.
The FTC alleges that Amazon deliberately misled millions of consumers by using manipulative design strategies and obstructing their attempts to cancel Prime subscriptions.
According to the agency, Amazon violated both the FTC Act and the Restore Online Shoppers’ Confidence Act by utilizing “dark patterns” to coerce consumers into enrolling in Prime without their explicit consent.
FTC Chair Lina Khan expressed her concerns, stating, “Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money.”
In response to the lawsuit, Amazon spokesperson Heather Layman vehemently denied the FTC’s claims, asserting that they are factually and legally incorrect.
Layman emphasized that Amazon strives to provide a clear and simple sign-up and cancellation process for Prime memberships, based on customer feedback and continuous improvement.
The FTC’s investigation into Amazon’s Prime program sign-up and cancellation procedures began in March 2021.
Tensions escalated between the FTC and Amazon when the agency requested CEO Andy Jassy and founder Jeff Bezos to testify regarding Prime practices.
Amazon argued that the request would be overly burdensome, a stance that the FTC ultimately rejected.
Since its launch in 2005, Amazon Prime has become one of the most popular subscription services worldwide, boasting over 200 million members and generating billions of dollars in revenue for the company.
