FTC files lawsuit against Amazon over auto-renewing Prime subscriptions
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Amazon Prime auto renewal FTC lawsuit overview:
Who: The Federal Trade Commission (FTC) has filed a lawsuit against Amazon.com Inc.
Why: The FTC claims Amazon intentionally makes it difficult for its Amazon Prime subscribers to cancel their memberships, in an effort to bolster the company’s own bottom line.
Where: The lawsuit was filed in Washington federal court.
The Federal Trade Commission (FTC) has filed a lawsuit accusing Amazon of using “dark patterns” to deceive consumers with auto renewal of their Amazon Prime subscriptions.
In a heavily redacted complaint, the FTC argued Amazon used “manipulative, coercive, or deceptive user-interface design” as a way to entice customers into signing up for Amazon Prime subscriptions.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina M. Khan said in a statement.
The FTC claims Amazon has “duped millions of consumers” into unknowingly enrolling in Prime subscriptions, in addition to allegedly knowingly complicating the cancellation process for Prime subscribers seeking to end their membership.
Primary function of Amazon Prime cancellation process is to prevent cancellations, FTC claims
The FTC argues the primary function of the Amazon Prime cancellation process is not to allow cancellation, but, in reality, to prevent members from being able to cancel.
Amazon leadership, in an effort to prevent Prime members from being able to easily cancel — and, therefore, increase the company’s bottom line — has slowed or rejected changes that would have made the process easier, the FTC alleges.
“These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets,” Khan said.
The FTC voted 3-0 to authorize its staff to file the complaint, which was filed in the U.S. District Court for the Western District of Washington.
A class action lawsuit was filed against Amazon last year by a consumer arguing the company makes it intentionally difficult for Amazon Prime members to cancel their subscriptions.
Have you struggled while attempting to cancel your Amazon Prime subscription? Let us know in the comments.
The Amazon Prime auto renewal FTC lawsuit is Federal Trade Commission v. Amazon.com, Inc., Case No. 2:23-cv-00932, in the U.S. District Court for the Western District of Washington.
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Source: Top Class Actions
