The US Federal Trade Commission (FTC). filed a lawsuit against Amazon.comaccusing the retail giant of defrauding millions of consumers, enrolling them in Amazon Prime without their consent and furthermore made it very difficult to cancel the subscription.
The FTC appealed in federal court in Seattle arguing that Amazon knowingly ‘defrauded millions of consumers’ and subscribed them without their knowledge. To do this he used “manipulative, coercive or deceptive user interface designs, so-called and ‘deceptive patterns'” to trick them into signing up for a service that automatically renews their Prime subscription.
Amazon Prime offers fast and free shipping on millions of items, discounts and access to movies, music and TV shows and other benefits. US Prime members typically pay $139 per year. Worldwide subscribers exceed 200 million.
According to APE, Amazon’s stock fell about 1% after this news. The company was not immediately available for comment. The FTC was investigating the issue of signing up and canceling Prime memberships from March 2021.
“Amazon tricked and tricked people into renewing their subscriptions without their consent,” which not only angered them but also cost them significantly, FTC Chairwoman Lina Hahn explained in her statement. Consumers trying to cancel the subscription had to go through too many steps to do so. The FTC cited reports that Amazon itself called the cancellation process an “Iliad” to describe how “epic” and complicated it was.
Source: News Beast
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