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and asserts that it has made improvements to its registration and cancellation processes, dismissing the allegations as outdated.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
