Amazon, a prominent technology giant, is currently under investigation by the US Federal Trade Commission (FTC) for alleged coercion of millions of customers into subscribing to its paid service, Amazon Prime, without their consent.
In addition, Amazon is facing accusations of implementing practices that hinder customers from canceling their subscriptions. To address these concerns, the FTC has filed a lawsuit in a Federal court in Seattle, seeking civil penalties and a permanent injunction to prevent similar violations in the future.
Amazon Accused of Using Manupulative and Deceptive Tactics
The FTC claims that Amazon Prime deliberately deceived a significant number of consumers by utilizing manipulative and deceptive user interface designs known as ‘dark patterns.’ These strategies were employed to trick users into unintentionally enrolling in automatically renewing Prime subscriptions.
In response, Amazon has defended itself by stating that the FTC announced the lawsuit without prior notice. The company further emphasized that it aims to provide a clear and simple experience for customers, allowing them to easily sign up for or cancel their Prime membership.
Since March 2021, the sign-up and cancellation processes for Amazon Prime have been under investigation. The FTC alleges that consumers encountered a convoluted and complex series of steps when attempting to cancel their Prime subscriptions.
Dark patterns in user interface design are commonly used by platforms to make canceling subscriptions challenging. One example is the practice of hiding cancellation options within intricate menus or settings, deliberately making them difficult to find.
Moreover, platforms may employ lengthy cancellation processes that require users to navigate through multiple pages or complete unnecessary steps. Additionally, they may impose waiting periods or restrict access to cancellation options during specific times, thereby prolonging the process and discouraging users from canceling.
These dark patterns are designed to maximize revenue by retaining as many paying customers as possible. By creating barriers such as complex, confusing, or hidden cancellation processes, platforms discourage users from canceling their subscriptions.
Conclusion
For Amazon Prime, this is not the first time it has faced backlash regarding these issues. In January 2021, the service’s cancellation policy was legally challenged in Europe by the Norwegian Consumer Council (NCC), indicating a recurring challenge for the company.
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