Amazon accused of forcing customers to sign up for its paid subscriptions

Amazon, the prominent tech giant, is currently facing scrutiny from the US Federal Trade Commission (FTC) over allegations of coercing millions of its consumers into signing up for its paid subscription service, Amazon Prime, without their consent.

Furthermore, the company is accused of implementing practices that make it difficult for customers to cancel their subscriptions. The FTC has taken legal action by filing a lawsuit in a Federal court in Seattle, seeking civil penalties and a permanent injunction to prevent similar violations in the future.

The FTC asserts that Amazon Prime knowingly deceived a vast number of consumers by utilizing manipulative and deceptive user interface designs referred to as ‘dark patterns.’ These strategies were employed to trick users into unintentionally enrolling in automatically renewing Prime subscriptions.

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Amazon Prime’s defence

According to a report, Amazon in its defense said FTC announced the lawsuit prior to their notice. It further said, “The truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership.”

According to the report, the Amazon Prime sign-up and cancellation processes have been under investigation, since March 2021. The Federal Trade Commission (FTC) alleges that consumers faced a convoluted and intricate series of steps when attempting to cancel their Prime subscriptions.

The FTC complaint further reveals that Amazon referred to this process as “Iliad Flow,” drawing inspiration from Homer’s epic poem that narrates the protracted Trojan War.

The “dark pattern UI design” and why platforms make it hard to cancel subscriptions

When it comes to subscriptions, platforms may utilize dark patterns to make canceling a subscription challenging. Hidden cancellation options are one such pattern, where platforms intentionally bury the cancellation feature within complex menus or settings, making it difficult to locate.

Also, lengthy cancellation processes are employed, requiring users to navigate through multiple pages or perform unnecessary steps to cancel their subscriptions. Moreover, platforms may impose waiting periods or restrict access to cancellation options during specific times, further prolonging the process and discouraging users from canceling.

These dark patterns are implemented with the aim of maximizing revenue by retaining as many paying customers as possible. By creating complex, confusing, or hidden cancellation processes, platforms create barriers that dissuade users from canceling their subscriptions.

For Amazon Prime, this might be a recurring challenge as this is not the first time it is facing a backlash. In January 2021, Amazon Prime’s cancellation policy faced legal challenges in Europe, with the Norwegian Consumer Council (NCC).