Amazon Faces Legal Challenges in the US Over Claims of Subscription Cancellation Difficulties

Amazon faced a US government lawsuit on Monday, where it was accused of employing deceptive methods to enroll millions in its Prime subscription service, making cancellation nearly impossible.

A complaint from the Federal Trade Commission (FTC), filed in June 2023, alleges that Amazon deliberately used a “dark pattern” design to mislead consumers into subscribing to a $139 Prime service during checkout.

According to the complaint, “For years, Amazon has intentionally and subconsciously enrolled millions of consumers in the Amazon Prime service.”

The case pivots on two primary claims: that Amazon registered customers without their clear consent through a confusing checkout process, and that it established a convoluted cancellation system dubbed “Illid.”

Judge John Chun presided over the case in federal court in Seattle. He is also overseeing another FTC case accusing Amazon of operating an illegal monopoly.

This lawsuit is part of a broader initiative, with multiple lawsuits against major tech companies in a bipartisan bid to rein in the influence of US tech giants after years of governmental inaction.

Allegedly, Amazon was aware of the extensive non-consensual Prime registrations but resisted modifications that would lessen these sign-ups due to their adverse effect on company revenue.

The FTC claims that Amazon’s checkout process forced customers to navigate a confusing interface designed with prominent buttons, effectively hiding the option to decline while signing up. Crucial information regarding Prime pricing and automatic updates was often concealed or presented in fine print, forming a core part of Amazon’s business model.

Additionally, the lawsuit scrutinizes Amazon’s cancellation procedure, which the FTC describes as a complicated “maze” involving 4 pages and 6 clicks.

The FTC seeks financial penalties, monetary relief, and permanent injunctions to mandate changes in Amazon’s practices.

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In its defense, Amazon argues that the FTC is overreaching its legal boundaries and asserts that it has made improvements to its registration and cancellation processes, dismissing the allegations as outdated.

The trial is anticipated to last around four weeks, relying heavily on internal Amazon communications and documents, as well as testimonies from company executives and expert witnesses.

Should the FTC prevail, Amazon could face significant financial repercussions and may be required to reform its subscription practices under court supervision.

Source: www.theguardian.com

Elon Musk’s SpaceX experiences technical difficulties at beginning of interview with Donald Trump

Just as the much-anticipated conversation between Donald Trump and Elon Musk was set to begin, users of X (formerly Twitter) were met with a message stating, “This space is no longer available.”

X’s livestreaming audio feature, Spaces, was supposed to host the conversation, but technical difficulties prevented it from working. Clicking on a link to Trump’s inactive account, @RealDonaldTrump, caused the site to freeze and become unusable, leading to complaints from users about being unable to join and browsers crashing.

Musk, the owner of X, posted that it seemed the platform had been hit with a massive DDOS attack. However, the rest of X seemed to be functioning without issues.

The interview was scheduled for 8pm ET, but due to resolving technical problems, Musk announced a 30-minute delay. Eventually, users were able to join the broadcast by clicking a link.

When the hold music on X stopped at 8:30 p.m. ET, a rustling sound could be heard from Trump’s microphone, leading to 10 minutes of silence before the interview finally began. X showed a high listener count of over 1 million as the interview progressed.

Musk mentioned that the DDOS attack had been mostly overcome, stating, “There is strong opposition to listening to President Trump, as evidenced by this massive attack.”

Trump expressed satisfaction with the incident, calling it an honor alongside millions of others.

This mishap is particularly damaging for X’s image as a tech innovator and a reliable advertising platform. The company recently filed a lawsuit against major advertisers for monopolistic practices.

Despite some challenges, Musk continues to position X as a platform at the forefront of politics and free speech.

Source: www.theguardian.com