Amazon sued by FTC for deceptive practices at Prime

This article was last updated on June 22, 2023

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Amazon sued by FTC for deceptive practices

Amazon has been sued by the US regulator Federal Trade Commission (FTC) for deceptive practices. The webshop allegedly registered customers without permission for Amazon Prime, a service that offers faster and free shipping of products for a fee. Additionally, Amazon allegedly made it difficult for consumers to cancel their subscription.

The chairman of the FTC stated, “Amazon misled and locked people into recurring subscriptions without their consent, leaving users not only frustrated but also forced to pay dearly.” An Amazon Prime subscription costs $139 per year. Amazon denies the allegations, stating that the watchdog is mistaken.

Allegations of ‘dark patterns’

The FTC claims that the deception leading customers to sign up for the subscription was primarily due to the use of ‘dark patterns’ on the website.

‘Dark patterns’ refer to the design and layout of a site that guide users towards certain actions the provider desires, rather than what the user is looking for. For instance, this can be achieved by making the button to accept cookies larger than the button to decline them, leading most people to press the larger button.

Complex steps and difficult cancellation

The FTC alleges that Amazon made it difficult for customers to complete purchases on their website without subscribing to Prime. At checkout, the website would present multiple options to subscribe to the additional service, making it challenging to find the option that solely completes the purchase. Customers were also allegedly unaware that they were subscribing to Prime by clicking certain buttons.

According to the regulator, the unsubscribe process was cumbersome and required customers to navigate through many unnecessary steps. Within the company, the lengthy unsubscribe process was referred to as ‘The Iliad,’ a nod to the twenty-four-book epic poem by the Greek writer Homer detailing the Trojan War.

Amazon disputes these allegations, stating, “The truth is, customers love Prime.” The company claims that its website is clearly designed, making it easy for customers to sign up for or cancel their Prime membership.

Previous lawsuits involving Alexa and Ring

This is not the first time Amazon has faced legal action from the FTC. The webshop settled two privacy-related lawsuits: one involving the company’s smart speaker, Alexa, and the other regarding Ring, a brand of video doorbells.