FTC sues Amazon for allegedly 'tricking' shoppers into joining its Prime service

The Federal Trade Commission has filed a lawsuit against Amazon.com Inc., accusing the online retail giant of enrolling customers into the Amazon Prime customer benefits program without their consent and making it difficult to cancel. 

In the suit, filed Wednesday in Washington District Court, the commission claimed Amazon “duped millions of consumers” into signing up for the program without their knowledge, using “manipulative, coercive or deceptive user-interface designs known as ‘dark patterns.’” 

The complaint said Amazon slowed—and in some cases rejected—changes that would have enabled consumers to more easily cancel their Amazon Prime subscriptions.  

Seattle-based Amazon denied the accusations in an email response to questions from Winsight Grocery Business, saying the FTC's claims are factually and legally false.

“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," an Amazon spokesperson said. "As with all our products and services, we continually listen to customer feedback and look for ways to improve the customer experience, and we look forward to the facts becoming clear as this case plays out.

"We also find it concerning that the FTC announced this lawsuit without notice to us, in the midst of our discussions with FTC staff members to ensure they understand the facts, context, and legal issues, and before we were able to have a dialog with the commissioners themselves before they filed a lawsuit. While the absence of that normal course engagement is extremely disappointing, we look forward to proving our case in court.”

Subscriptions to Amazon Prime currently run $14.99 a month or $139 a year and include discounts, free delivery and a variety of other benefits, such as access to Amazon Video and Amazon Music. The service is available at a discount of $6.99 a month for those enrolled in some government assistance programs, such as Supplemental Nutrition Assistance Program (SNAP) online shopping via electronic benefits transfer (EBT) and Medicaid.  

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC Chair Lina Khan in a statement. “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 noted that its lawsuit is “significantly redacted” but  told the court it does not have a compelling reason for ongoing secrecy in the case. The commission added that Amazon’s alleged practice of using “dark patterns” to trick consumers into signing up violates both the FTC Act and the Restore Online Shoppers’ Confidence Act. 

The commission, which approved pursuing the lawsuit in a 3-0 vote, argued that Amazon’s online checkout process offers numerous opportunities to join its Amazon Prime service. It also claims that Amazon made it more difficult to purchase items without subscribing.  

“In some cases, the 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 FTC noted. 

Those who did enroll then found it difficult to cancel, according to the FTC, which added that media reports have noted that Amazon used the word “Iliad” to describe the process—a reference to the epic poem by Homer, a story set over 24 books and nearly 16,000 lines about the Trojan War.  

Amazon Prime users attempting to cancel were redirected multiple times to pages online making various offers to continue the subscription, according to the FTC. “Only after clicking through these pages could consumers finally cancel the service,” the commission noted. 

The FTC added that Amazon also “attempted to delay and hinder the commission’s investigation in multiple instances."

* This story was updated to include comments from Amazon.