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."
DON'T MISS: Amazon Is Making a Change That Will Make Your Shopping Experience Much Easier
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."
More Retail:
- ‘Too Pretty’ Home Depot Worker Faces Backlash After Viral Mirror Post
- A Classic Kitchenware Brand Files for Chapter 11 Bankruptcy
- Who’s Running The Gap? With no CEO, Retailer Hurtles Towards Crisis
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."
Amazon did not immediately respond to The Street's request for comment.
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.
Receive full access to real-time market analysis along with stock, commodities, and options trading recommendations. Sign up for Real Money Pro now.