🛒🔒 F.T.C. Sues Amazon for Inducing Users to Subscribe to Prime
Di F.T.C. don sue Amazon on top say di company dey illegally induce consumers to sign up for Prime service and den dey hinder dem from canceling di subscription, di most aggressive action against di company to date by di agency’s chair, Lina Khan. 💼💔
Di lawsuit, wey dem file for U.S. District Court for di Western District of Washington, argue say Amazon don use design tactics on top dia website wey dem dey call “dark patterns” to nudge people to subscribe to Prime, di F.T.C. yan for one release. And when consumers wan cancel, dem gats go through one byzantine process to fit achieve am. 🖥️😡
“Amazon trick and trap people into recurring subscriptions without dia consent, wey no just dey frustrate users but also cost dem plenty money,” Ms. Khan yan for one statement. 💔💰
Amazon no respond immediately to di request for comment. 🚫🗣️
Di lawsuit na di first time wey F.T.C. don carry Amazon go court under Ms. Khan, wey rise to fame with one viral critique of di company and wey dey ramp up scrutiny of di e-commerce giant. Ms. Khan don yan say di power wey big tech companies get over online commerce require say regulators gots to dey far more aggressive, and she don begin take actions against dem. ⚖️🔎
Under Ms. Khan, di F.T.C. continue one lawsuit against Meta, wey dem dey argue say e cut off nascent competitors by buying Instagram and WhatsApp, and dem don sue to block Microsoft’s blockbuster $69 billion deal for di video game publisher Activision Blizzard. 📚💼
Ms. Khan never bring di kind of sweeping antitrust case against Amazon wey di company’s critics dey demand. Di F.T.C.’s antitrust bureau don dey investigate Amazon’s practices for years and observers dey closely watch how she go move forward with dia findings. 🧐📉
Di lawsuit na part of one bigger effort by regulators to limit di power of tech giants including Amazon, Apple, Google, Microsoft, and Meta, Facebook’s parent company. Di Department of Justice don file multiple antitrust cases against Google for recent years. ⚖️📱
Amazon don recently settle cases with di F.T.C. wey start before Ms. Khan’s tenure. Di company don agree to pay $25 million last month to settle F.T.C. claims say Amazon’s Alexa home assistant devices dey illegally collect children’s data. Di agency still settle another privacy case with Amazon’s Ring home security subsidiary. 💰🔐
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Amazon Prime don dey attract subscribers with promises of free expedited shipping, access to a streaming video library and other benefits. In 2021, di company talk say e get more than 200 million members for di program, wey cost $139 per year. Customers last year spend $35 billion on Amazon subscriptions, mainly Prime memberships, according to di company’s financial disclosures. 🚚📺💸
On Wednesday, di F.T.C. yan say Amazon don make am particularly difficult to buy product for dia store without subscribing to Prime while checking out. Di agency yan say Amazon make am hard for consumers to find di page wey go allow dem cancel di service. Once dem find am, Amazon dey bombard dem with offers wey dey try to make dem change dia mind. 📦🚫
Di lawsuit follow years of media and activist attention on top how hard e dey to cancel Prime. For one 2021 complaint to District of Columbia attorney general, di Electronic Privacy Information Center, one advocacy group, yan say Amazon don use manipulative designs to “frustrate di intentions of users wey wan cancel dia Amazon Prime subscriptions.” 🔒😡
Di F.T.C. don recently promise say dem go crack down on designs wey dey try to nudge consumers or confuse dem as dem wan cancel one service.
“While dark patterns fit manipulate consumers secretly, dem practices dey strictly on F.T.C.’s radar,” di agency yan for one 2022 report. 🔍🚫
Critics believe say Prime na key part of Amazon’s dominance sake of say e dey keep customers inside di company’s retail store by offering dem other perks, like access to Amazon streaming exclusives like “Tom Clancy’s Jack Ryan” and “The Lord of the Rings: The Rings of Power.” 📺🔐
Amazon don yan say Prime dey provide benefits for consumers. When di company dey lobby against reforms of antitrust laws wey focus on top tech giants for recent years, dem dey always tell lawmakers and media say di changes go cripple Prime. 💼🔒
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🛒🔒 F.T.C. Sues Amazon for Inducing Users to Subscribe to Prime
The Federal Trade Commission (F.T.C.) has filed a lawsuit against Amazon, alleging that the company illegally enticed consumers to sign up for its Prime service and then made it difficult for them to cancel their subscription. This marks the most aggressive action taken against Amazon to date by F.T.C. Chair Lina Khan. 💼💔
The lawsuit, which was filed in the U.S. District Court for the Western District of Washington, claims that Amazon utilized design tactics on its website known as “dark patterns” to persuade people to subscribe to Prime, according to a statement released by the F.T.C. And when consumers wanted to cancel, they were faced with a complex process to do so. 🖥️😡
“Amazon tricked and trapped people into recurring subscriptions without their consent, causing frustration and significant financial loss,” stated Ms. Khan. 💔💰
Amazon has not yet responded to the request for comment. 🚫🗣️
This lawsuit represents the first time that the F.T.C. has taken Amazon to court under the leadership of Ms. Khan. She rose to fame with a viral critique of the company and has been intensifying scrutiny of the e-commerce giant. Ms. Khan has emphasized the need for regulators to be more aggressive in addressing the power that big tech companies hold over online commerce, and she has begun taking actions against them. ⚖️🔎
Under Ms. Khan’s leadership, the F.T.C. has also pursued a lawsuit against Meta, arguing that the company stifled competition by acquiring Instagram and WhatsApp, and it has sought to block Microsoft’s $69 billion acquisition of the video game publisher Activision Blizzard. 📚💼
However, Ms. Khan has not yet brought a comprehensive antitrust case against Amazon, despite demands from critics. The F.T.C.’s antitrust bureau has been investigating Amazon’s practices for several years, and observers are closely watching how Ms. Khan will proceed with their findings. 🧐📉
This lawsuit is part of a broader effort by regulators to curb the power of tech giants, including Amazon, Apple, Google, Microsoft, and Meta (Facebook’s parent company). The Department of Justice has filed multiple antitrust cases against Google in recent years. ⚖️📱
Amazon has recently reached settlements with the F.T.C. for cases that were initiated before Ms. Khan’s tenure. Last month, the company agreed to pay $25 million to settle F.T.C. claims that its Alexa home assistant devices had unlawfully collected children’s data. The agency has also settled another privacy case involving Amazon’s Ring home security subsidiary. 💰🔐
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Amazon Prime has attracted subscribers for years with promises of free expedited shipping, access to a streaming video library, and other benefits. In 2021, the company reported having over 200 million members in the program, which costs $139 per year. According to Amazon’s financial disclosures, customers spent $35 billion on Amazon subscriptions, primarily on Prime memberships, last year. 🚚📺💸
The F.T.C. stated on Wednesday that Amazon has made it particularly challenging to make a purchase on its platform without subscribing to Prime during the checkout process. The agency alleges that Amazon made it difficult for consumers to find the page where they could cancel the service. Furthermore, once they found it, Amazon bombarded them with offers intended to change their minds. 📦🚫
This lawsuit comes after years of media and activist attention on the difficulties of canceling Prime. In a complaint filed with the District of Columbia attorney general in 2021, the Electronic Privacy Information Center, an advocacy group, accused Amazon of using manipulative designs to frustrate users’ attempts to cancel their Amazon Prime subscriptions. 🔒😡
The F.T.C. has recently pledged to crack down on design practices that nudge consumers or create confusion when they want to cancel a service.
“While dark patterns may manipulate consumers discreetly, the F.T.C. is closely monitoring these practices,” stated the agency in a 2022 report. 🔍🚫
Critics argue that Prime is central to Amazon’s dominance because it keeps customers within the company’s retail ecosystem by offering additional perks, such as access to Amazon’s exclusive streaming content like “Tom Clancy’s Jack Ryan” and “The Lord of the Rings: The Rings of Power.” 📺🔐
Amazon contends that Prime provides benefits for consumers. When the company has lobbied against antitrust reforms targeted at tech giants in recent years, it has consistently argued that these changes would harm Prime. 💼🔒
