The FTC sues Amazon, alleging the company “tricked and trapped” people into buying Prime memberships that were purposefully hard to cancel.
Lawsuit filed: The Federal Trade Commission claims that Amazon used manipulative, coercive, or deceptive designs to enroll shoppers into auto-renewing Prime subscriptions.
- Alleges that Amazon built a convoluted, multi-step cancellation process to discourage people from quitting.
In context: Prime memberships cost $139 a year or $14.99 a month and account for $25 billion of Amazon’s annual revenue.
- Prime subscribers tend to spend more on Amazon than other shoppers.
Dark patterns: The FTC says Amazon’s website used manipulative design elements to trick users into making decisions they would not have otherwise made.
- Options to sign up for Prime were prominent, while options to shop without Prime were harder to spot.
FTC’s goal: The agency seeks monetary civil penalties without specifying a total amount.
- This will be the first FTC case against Amazon to go to trial under the agency’s chair, Lina Khan.
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