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The Street
The Street
Ian Krietzberg

Amazon Says FTC Lawsuit Alleging The 'Tricking' of Customers Into Signing Up For Prime Is 'False'

After a lengthy investigation of Amazon's Prime sign-up and cancellation processes, the FTC is suing the online retailer, alleging that it used illegal tactics to get customers to subscribe to Prime, additionally making it difficult to cancel said subscription. 

The FTC said in a press release that Amazon violated the Restore Online Shoppers’ Confidence Act as well as the FTC Act by employing something called "dark patterns."

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Dark patterns refer to website designs that are meant to influence users to make certain choices, according to Vox. Dark patterns are nothing new; think of an ad whose "x" is so small you either can't see it, or when you click on it, you click on the ad itself. Or a trial subscription that automatically renews and charges you after the trial expires. 

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Kahn said in a statement. "These manipulative tactics harm consumers and law-abiding businesses alike."

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The complaint, filed in the U.S. District Court for the Western District of Washington, says that customers are faced with "numerous" opportunities" to become a Prime member during checkout, and often find it more difficult to check out without subscribing to Prime. The FTC also cited certain cases where a transaction did not make clear that a user was purchasing a Prime subscription. 

The FTC has also taken issue with Prime's cancellation process, saying that Amazon made it "difficult" to find the cancellation flow, which is loaded with redirection to new pages that continue to offer the Prime subscription at a discount. 

The complaint further alleges that Amazon was aware of "consumers being nonconsensually enrolled" in Prime, and, beyond doing nothing to address the issue, "attempted to delay and hinder the Commission's investigation in multiple instances." 

"The FTC’s claims are false on the facts and the law," an Amazon spokesperson told The Street. They explained that "customers love Prime," and so they made it easy for people to subscribe. 

Noting concern with the FTC for announcing the lawsuit before notifying the company, the spokesperson said Amazon looks "forward to proving our case in court.” 

The complaint comes just a day after Vermont Sen. Bernie Sanders launched an investigation into Amazon for being "one of the most dangerous" places to work. 

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