FTC accuses Amazon of deceiving customers with Prime subscription sign-up, cancellation

The Federal Trade Commission (FTC) filed a lawsuit against Amazon on Wednesday that accuses it of tricking customers into enrolling in its Amazon Prime program and preventing them from canceling their subscriptions. 

The lawsuit alleges Amazon used manipulative, coercive or deceptive designs known as “dark patterns” to convince customers to sign up for a subscription, which automatically renews. 

The agency said Amazon also made the cancellation process complicated to stop customers from leaving, and leaders slowed down or rejected changes to the process that would have made it easier for customers — because doing so would hurt the company’s profits. 

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chairwoman Lina Khan said in a release. “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets.” 

An Amazon spokesperson told The Hill that the FTC’s claims are false and inconsistent with the facts and the law.

“The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership,” the spokesperson said. “As with all our products and services, we continually listen to customer feedback and look for ways to improve the customer experience, and we look forward to the facts becoming clear as this case plays out.”

 The complaint is heavily redacted, but the FTC has told the court in the Western District of Washington, where it was filed, this is unnecessary. 

A press release from the FTC says consumers had many opportunities to subscribe to Amazon Prime at $14.99 per month during the online checkout process, and some customers had more difficulty buying items without subscribing. Customers would also sometimes be presented with a button to complete their transaction that did not clearly state they were agreeing to subscribe to Prime, the FTC alleges. 

The release also says Amazon’s cancellation process deters people from ending their subscriptions, requiring them to take multiple steps, including finding the cancellation “flow,” before being redirected to multiple pages that make offers for them to keep their subscription at a discounted price, turn off the auto-renew feature or not cancel. 

The lawsuit alleges Amazon has called the cancellation process the “Iliad,” a reference to Homer’s epic poem about the Trojan War, known for being long and “arduous.” 

The FTC alleges Amazon was aware of this, and top executives did not take any “meaningful” steps to address it. It also accuses Amazon of trying to delay and undermine its investigation on multiple occasions.