Amazon Gets Sued For Tricking Customers to Continue to Subscribe to Prime
JAKARTA - The United States (US) Federal Trade Commission (FTC) has sued Amazon for tricking users into continuing to subscribe to Prime. In fact, it bothers them when they want to cancel it.
In a filing with the US District Court for the Western District of Washington yesterday, the FTC alleges that Amazon deceived users by registering them with video streaming service Prime without their consent.
Dubbed the dark pattern, users are also tricked into continuing to renew their subscription automatically, and complicating the cancellation process to prevent them from ending their membership.
This is because the company does not want to lose. Amazon makes the process of purchasing goods on their site difficult for users who are not subscribed to Prime.
The FTC also considered the button that instructs buyers to complete a transaction unclear, whereby when a user clicks the button it means they agree to subscribe to Prime.
"Amazon deceives and tricks people into resubscribing without their consent, not only frustrating users but also costing them a lot of money," said FTC chairman Lina M. Khan in a statement.
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"These manipulative tactics hurt law-abiding consumers and businesses," he added.
To subscribe, users must spend at least 14.99 US dollars (Rp. 233 thousand) per month or 139 US dollars (Rp. 2 million) per year.
According to Khan, Amazon resists changes to the system that would make it easier for users to cancel. The company also disputes the claims made by the FTC.
"We are constantly listening to customer feedback and looking for ways to improve the customer experience, and we hope the facts will become clear as this case unfolds," said Amazon spokesperson Layman as quoted by the Seattle Times, Thursday, June 22.
Layman emphasized that the lawsuit was also filed without notifying the company in advance and stated that the FTC's claim was wrong based on facts, context and law.
Launched in 2005, Prime already has more than 200 million members worldwide who are entitled to perks such as free shipping, returns and Prime Video streaming services.
"While the lack of normal engagement is very upsetting, we look forward to proving our case in court," said Layman.
This new lawsuit is the third time the FTC has taken action against Amazon in recent weeks.
In May, Amazon agreed to pay $30.8 million to settle two cases brought by the FTC regarding privacy and consumer data for its smart devices.