FTC sues Amazon, alleging it used ‘dark patterns’ to trick consumers into signing up for Prime

The Federal Trade Commission has sued Amazon, alleging the e-commerce giant used “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns'” to trick millions of consumers into signing up for its Prime subscription service.

Wednesday’s complaint also targets Amazon for allegedly making it immensely difficult for users who wished to cancel their memberships.

Lengthy, Multi-step Cancellation Process

The agency alleged that since 2016, Amazon maintained a multi-step cancellation process it internally referred to as “Iliad Flow”. Other than contacting customer service, the company provided no alternative to its users wishing to cancel their subscription apart from going through the lengthy process, it said.

The multi-step process allegedly required customers to go through six pages, six clicks and fifteen options. Several off-ramps were also part of the chaos. They intended to derail the user and included warnings about missing out on promotional discounts and other benefits.

Meanwhile, Amazon made it relatively easy for consumers to sign up for the Prime subscription service, the FTC said, adding the process required just two clicks, with specifics about recurring bills often buried in the fine print.

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Complaint Targets Major Area Of Amazon’s Business

The complaint filed in the US District Court for the Western District of Washington represents the FTC’s most serious lawsuit yet against business practices it claims harm consumers by using psychological gimmicks to keep consumers trapped.

The lawsuit marks the culmination of a long probe into the e-commerce giant’s Prime practices that included testimony from Amazon CEO Andy Jassy and founder Jeff Bezos.

The complaint also targets a major area of Amazon’s business, that helps it generate billions in revenue. Supported in part by faster shipping and huge investments in original content, the company had over 200 million paid Prime subscribers in 2021.

“We Look Forward To Proving Our Case In Court”

Amazon is undoubtedly not happy with the lawsuit. It has called the allegations “false on the facts and the law”, adding the FTC announced the complaint without notice. “We look forward to proving our case in court,” the company said in a statement on Wednesday.

In response to FTC pressure, Amazon took some steps in April to simplify the process of cancelling Prime subscriptions, but before then had denied its users the ability to easily cancel memberships online, the agency alleged.

Last month, the e-commerce giant agreed to pay over $30 million to settle a couple of FTC privacy complaints associated with its Ring and Alexa products.