The Federal Trade Commission on Wednesday announced it is suing Amazon.com for what the agency described as a "years-long effort to enroll consumers into its Prime program without their consent while knowingly making it difficult for consumers to cancel their subscriptions to Prime."
The FTC filed a complaint in the U.S. District Court for the Western District of Washington, saying Amazon has used "manipulative, coercive, or deceptive user-interface designs" to dupe consumers.
It said the patterns were in violation of the FTC Act, as well as the Restore Online Shoppers’ Confidence Act, a law established to protect consumers.
Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina M. Khan noted in a news 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.”
The FTC alleged a "button presented to consumers to complete their transaction did not clearly state that in choosing that option they were also agreeing to join Prime for a recurring subscription."
The release noted Amazon also deliberately complicated the cancellation process for subscribers who tried to end their membership by forcing them to deal with "multiple steps to actually accomplish the task of cancelling."
"Consumers had to first locate the cancellation flow, which Amazon made difficult. Once they located the cancellation flow, they were redirected to multiple pages that presented several offers to continue the subscription at a discounted price, to simply turn off the auto-renew feature, or to decide not to cancel. Only after clicking through these pages could consumers finally cancel the service," according to the release.
In the complaint -- which is 159 pages and heavily redacted -- the FTC also accused the company of trying to delay and hinder the investigation. The investigation began in 2021.
Launched in 2005, Prime has more than 200 million members worldwide who pay $139 a year, or $14.99 a month, for faster shipping and other perks, such as free delivery and returns.
The lawsuit follows another Amazon-related win by the agency just a few weeks ago. Earlier this month, Amazon agreed to pay a $25 million civil penalty to settle allegations it violated a child privacy law for storing kids’ voice and location data recorded by its popular Alexa voice assistant. It also agreed to pay $5.8 million in customer refunds for alleged privacy violations involving its doorbell camera Ring.