The US Federal Trade Commission (FTC) has accused Amazon.com of deceptive practices related to its Amazon Prime subscription service, Reuters reports.
According to the FTC, Amazon enrolled millions of consumers in Amazon Prime without their consent which made it difficult for them to cancel their subscriptions. The agency alleges that Amazon used manipulative user interface designs, known as "dark patterns," to deceive consumers into automatic Prime renewals. The FTC is seeking civil penalties and a permanent court injunction. This lawsuit is part of the government's broader efforts to regulate the market power of large tech companies and promote consumer protection.
Amazon Prime is a global subscription program that generates $25 billion in annual revenue. It offers fast and free delivery, discounts, and access to various entertainment content. Prime members pay $139 per year in the US and play a significant role in Amazon's sales. Amazon argues that Prime is popular among customers and claims to make the sign-up and cancellation process clear and simple. The company expressed concern over the FTC's decision to file the lawsuit without prior notification.
The FTC's complaint highlights the difficulties faced by consumers trying to cancel their Prime memberships, citing confusing steps and a process that still requires multiple clicks to cancel. The FTC also accuses Amazon of intentionally hindering its investigation by providing inadequate responses to document requests. This lawsuit comes on the heels of other recent actions taken against Amazon by the FTC, reflecting global efforts to address the market dominance of major technology companies. However, critics note that difficulties in canceling memberships are not unique to Amazon, as other retail sellers and subscription services also face similar challenges.
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