A new lawsuit filed by the Federal Trade Commission (FTC) alleges that Amazon tricked millions of consumers into signing up for its Prime membership program, which includes access to the Prime Video streaming platform. The suit accuses the company of using "manipulative, coercive, or deceptive" tactics in promoting Prime membership, and also making the loyalty program difficult to exit. The suit is part of a larger effort by the FTC to crack down on what it calls "dark patterns," design and interface tactics used by companies to dupe customers into spending more money or signing away protections on their privacy and data. - In a press release, FTC Chair Lina Khan accused Amazon of "manipulative tactics" that "harm consumers and law-abiding businesses alike."
- Among other specific complaints, the FTC lawsuit points out that Amazon presented Prime membership in misleading, "asymmetric" terms, interrupted the shopping experience with confusing messages about Prime, did not adequately disclose the cost of the monthly auto-renewal feature, and purposefully made the cancellation process arduous in order to "thwart" attempts to unsubscribe.
- The FTC has also accused Amazon of acting in bad faith throughout its investigation and attempting to delay its work.
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