Amazon duped millions of consumers into enrolling in Prime, US FTC says

[BumRushDaShow]

Last edited Wed Jun 21, 2023, 04:56 PM - Edit history (2)

Source: Reuters

WASHINGTON, June 21 (Reuters) - The U.S. Federal Trade Commission on Wednesday accused Amazon.com (AMZN.O) of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel, the agency's latest action against the ecommerce giant in recent weeks.

The FTC sued Amazon in federal court in Seattle, alleging that the company has "knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime." In a statement, Amazon called the FTC's claims "false on the facts and the law." Amazon has used "manipulative, coercive or deceptive user-interface designs known as 'dark patterns' to trick consumers into enrolling in automatically renewing Prime subscriptions," the FTC said as it seeks civil penalties and a permanent injunction to prevent future violations.

The lawsuit is one of several actions taken by President Joe Biden's administration intended to rein in the outsized market power of Big Tech firms as it tries to increase competition to protect consumers. The FTC said Amazon Prime is the world's largest subscription program, generating $25 billion in revenue annually. It offers fast, free shipping on millions of items, various discounts and access to movies, music and television series, as well as other benefits.

Prime members in the United States pay $139 per year and drive much of Amazon's sales volume. Prime, which has more than 200 million members worldwide, is crucial to Amazon's other businesses including its streaming service Prime Video and its grocery delivery service. In its statement, Amazon 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."

Read more: https://www.reuters.com/legal/amazon-duped-millions-consumers-into-enrolling-prime-ftc-2023-06-21/

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Article updated.

Previous article -

WASHINGTON, June 21 (Reuters) - The U.S. Federal Trade Commission filed suit against Amazon.com Inc (AMZN.O) on Wednesday, accusing the retailer of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel.

The FTC filed suit in federal court in Seattle and said it alleged that "Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime." The FTC said Amazon used "manipulative, coercive or deceptive user-interface designs known as 'dark patterns' to trick consumers into enrolling in automatically renewing Prime subscriptions."

Amazon Prime offers fast, free shipping on millions of items, various discounts and access to movies, music and television series, as well as other benefits. Prime members in the United States pay $139 per year and drive much of Amazon's sales volume. Prime has more than 200 million members worldwide.

The FTC said Amazon generates $25 billion in revenue from Prime subscriptions annually and that "one of Amazon's primary business goals - and the primary business goal of Prime - is increasing subscriber numbers." The lawsuit said that under substantial pressure from the FTC, Amazon changed its cancellation process in April but that "violations are ongoing." The agency is seeking civil penalties and a permanent injunction to prevent future violations.

Original article/headline -

Amazon duped 'millions of consumers' into enrolling in Prime -- FTC

WASHINGTON, June 21 (Reuters) - The Federal Trade Commission filed suit against Amazon.com Inc (AMZN.O) Wednesday, charging the retailer with enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it difficult for them to cancel.

The FTC said it filed suit in U.S. District Court in Seattle charging "Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime." The FTC said Amazon used "manipulative, coercive, or deceptive user-interface designs known as 'dark patterns' to trick consumers into enrolling in automatically-renewing Prime subscriptions."

Amazon Prime offers fast, free shipping on millions of items, various discounts and access to movies, music and television series, as well as other benefits. Prime members in the United States generally pay $139 per year and drive much of Amazon's sales volume. Prime has more than 200 million members worldwide.

The FTC has been investigating sign-up and cancellation processes for the Prime program since March 2021. "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.

[BeyondGeography]

1. I like this

[True Dough]

2. They do make it so easy to sign up

and tricky to unsubscribe. That's a fact! I know I have seen Prime charges show up on my credit card bill after I was sure I had cancelled. Now that I'm free and clear, my wife maintains the Prime membership and she puts through all Amazon orders so we're not both paying.

[TwilightZone]

12. You can link multiple accounts to the same prime account.

There are a few conditions and you have to share the same wallet, but it's pretty simple. My partner and I use the same Prime account with two different Amazon logins.

https://www.amazon.com/gp/help/customer/display.html?nodeId=GWZ7QXD2X8WL8YE8

[True Dough]

39. Good to know

Thanks for mentioning that.

[LudwigPastorius]

49. "They do make it so easy to sign up and tricky to unsubscribe"

That's known as the "Roach Motel", and AOL was the worst I ever came across.

Back in the 90s, I had to end up canceling a credit card just so they would stop charging me subscription fees.

[snowybirdie]

3. I find it so convenient

No one fooled me into signing up or tricked. I get free delivery on packages, A large selection of entertainment and convenience. Let's see some statistics. I cancelled MLB easily with a call, no hassle at all.

[Rebl2]

7. It's been

several years ago now my husband signed up and he wasn’t tricked into it. As long as the product is coming from Amazon it is free shipping. If it is from someone else that sells on Amazon, there might be a shipping charge. A couple weeks ago my husband bought something and received it same day.

[pandr32]

22. Free shipping if it is Prime.

We have it in Hawaii and it is a life saver because of shipping costs others charge. We are usually excepted with other business's shipping deals.
All you have to do is click on the "Prime" at the top of the column on the left of the page and all Prime options in a category are given. We can also send gifts to family and friends who often receive them in a day or two.
We also enjoy our streaming prime membership. We do not feel trapped or coerced.

[PatSeg]

10. Yes, I've had Amazon Prime for years

and I consider it very beneficial.

[sarcasmo]

61. Agree and I've never been "duped."

[PatSeg]

62. Me either

I can find fault with Amazon on some things, but this was never an issue for me. Whenever I've contemplated cancelling Prime, they just give me more benefits.

[Oopsie Daisy]

13. Same here. I definitely get my money's worth! (All this and streaming too!)

[Tree Lady]

17. Feel same way I do all the ordering

for my older mom out of state who can't shop and people at her senior place bring the boxes to her door. So very useful for me.

[jeffreyi]

59. Agree.

I live in an area without nearby shopping. I feel the prepaid shipping is a good value in my situation.

[forgotmylogin]

56. Prime is awesome if you use it.

It was a lifesaver during the pandemic because before I got Prime, I would wait until my cart was full enough to hit the "order" button because you need a specific amount to get free shipping. Now it's really convenient to be like "I need this thing I can't find in the store or is inconvenient to transport or I don't want to drive 15 miles out of my way to the one store that has this." And I'm often shocked how quickly stuff shows up sometimes. I can also buy stuff and ship to other people which helped when my elderly dad in the next state over needed something he couldn't drive to get - I was able to buy and get a new refrigerator delivered and installed for him without going into a store or him needing to arrange anything except being there to accept it.

The free streaming movies and music and Kindle free library I don't use much but is frosting on the cake.

The only thing you have to be careful of is sometimes the prices won't jibe with the store. I usually order deodorant in bulk 3-6 at a time, and I was used to getting 3 for like $18-20 and once I almost ordered 2 for $27 before I noticed the item count. Sometimes you have to review the same purchase from multiple outlets to get the correct price, or use a plugin like Honey for price tracking.

I actually had Prime expire accidentally once because my credit card on record was out of date. When I updated it and renewed, they comped me the partial month free and started the subscription again on the next full month.

[DemocraticPatriot]

60. Three deodorants for $18 to 20 ?? THAT STINKS!

I get mine at Dollar Tree for $1.25 each !

[forgotmylogin]

68. I'm no stranger to dollar store deals

I'm no stranger to dollar store deals - but I've noticed almost every time I get a spray can of some kind from the $1 or clearance aisle it seems to fail mechanically before the product is gone. I've tried the air freshener and disinfectant spray and always end up discarding half of it because the nozzle stops working.

I'm also getting the special deodorant scents they usually don't stock in the store - coconut mint is a fave!

[hlthe2b]

4. They keep cutting out services I depended on or enjoyed while shipping is no longer same day for

many items. I did a cost savings estimate and found I now barely hit the break-even point in terms of how much I order, any savings, and then any perceived benefits from their video streaming, occasional e-book offerings, and the like. I used to subscribe to a couple of hard-copy magazines--just because I liked to keep something around to glance at before bed and to pass on to an elderly neighbor from time to time. They discontinued it and I've had nothing but problems using the publisher's subscription services. The Amazon interphase was convenient and dependable. But, no more. Plus a lot of items I subscribed to purchase on a regular basis are no longer available. Amazon's prices are going up, too. Returns are very easy for Prime members, but UPS as a drop-off now costs you. Fortunately for me, Kohls and UPS are both very close and Kohls still takes Amazon returns no questions asked for free. And, face it, you can't beat the convenience of Amazon if you really need something and you have no time.

All in all, I'm still subscribed, but with the major price increases for Prime, I suppose I don't know for how long. For now, it seems worth it. That said, I was an early "adopter" so, I can't say I was duped at all.

[Rebl2]

31. We can still

get same day shipping on many items. We did just a couple weeks ago. I personally choose to receive orders on a certain day of the week, because they offer that.

[yellowdogintexas]

34. the delayed delivery option earns $1.50 credit for any digital purchase

It's automatically applied to the order.
t.
The only service Amazon has discontinued that I miss is book lending. I could loan books to other Prime members but can't do that now. My sister and I lent books back and forth frequently, in fact her husband read an entire series because I could lend it.

[Wingus Dingus]

5. I gift my elderly parents a prime membership every year at Christmas so

they don't have to drive to stores, and get free shipping. It's really great for older people. Amazon does not automatically renew it, at least not for my parents' account.

[Submariner]

6. whine...whie...whine...

Do you complainers know how much extra it cost to disassemble his yacht for transport so it would not get egged by protesters in the Netherlands before its official launch date? Do ya? Have some empathy.

That cost the guy a bundle of extra unanticipated fees. Someone has to pay for it, and he sure isn't. So I guess those stuck in the Amazon version of a timeshare contract are stuck with the tab.

[brooklynite]

8. This was a massively over-rated story

Assuming you don't just want to complain about a rich guy buying a bigger boat than he deserves, the two points to remember are:

1) the fault lay with the the boat builder which was doing the work in a dock with no other water access.

2) the bridge removal was temporary and would have been fully restored.

[cbabe]

23. Pretty sure poster is being silly.

[EX500rider]

69. Yeah I never got the blaming Musk for that

If a shipyard says they can build your boat I would assume they can get it the ocean from there.

[Joinfortmill]

51. Lol

[Bayard]

9. Not worth it

I don't order anything from Amazon unless its, Over $25, Free Shipping.

But you hit one wrong button, and you're signed up for Prime.

[Lulu KC]

11. So even if you're NOT a prime member it's free shipping over $25?

I didn't know that. I am a Prime member (maybe for the last time) and often I see free fast shipping for over $25, with free slower shipping for less expensive things. I rarely need things urgently and if it's free for over $25, what is the point? Thanks for pointing this out.

[CountAllVotes]

15. Yes, that is true

I have never been a prime member and yes, they did enroll me in the Prime membership!

I buy just enough to get free shipping when I buy things from them.

You have to make sure you click on the right button when checking out however.

[Qutzupalotl]

26. Yes, but it's not truly slower shipping.

They use the same shipping methods, but if you're not a Prime member, they hold your order at their facility for up to a week. This is from my own research tracking my orders.

I refuse to sign up for Prime just because I'm impatient.

[Tanuki]

40. Yes, and if your order is less than $25, you can enter

"under 5 dollars", "under 3 dollars," or whatever amount you'd need into the search box, and you'll get a list of inexpensive items you could add to get your order up to $25 and free shipping! 😉

[Lulu KC]

47. Thank you all.

I have felt so manipulated by that Prime membership. I shall be free. They used to have a really fun free video list for Prime but that seems to have disappeared and we end up renting for $3.99 all the time, which irritates me.

[Hekate]

58. I didn't know that!

[ExWhoDoesntCare]

65. It's slower shipping

You get faster shipping with Prime.

That's the part you're leaving out.

[Maninacan]

14. Free prime trial

It is always tough to maneuver out of getting Prime. I had a 1 month free trial i didn't want.
I have no interest in anything it offers and don't have internet good enough to use it anyway.
The dark pattern term is interesting.

[FakeNoose]

16. I am a Prime member and have been for years

I believe my savings on shipping costs have more than justified the cost of Prime. Even so, I find it annoying that the membership fee seems to go up almost every year. Here's the kicker - I'm able to share my Prime membership with my son and DIL who live in another state. Son and DIL are actually getting more benefit from the Prime shipping cost savings than I am, simply because they return every other order for one reason or another. (!) There's no limit on the free returns of Amazon Prime orders, and it's easy to do.

Another benefit of Prime is the music and video/TV show offerings - but I must admit for me it's a secondary consideration. When I originally joined Prime they didn't have the streaming yet, and I thought it was worth the cost even then.

I guess I'm a satisfied customer of Amazon. However the way they suck people into the video and music streaming is probably borderline larceny, so it's good that they're getting spanked by the FTC.

[Marthe48]

18. I used to sign up for Prime then cancel

and didn't have any trouble. I decided to go ahead and keep it. I imagine I send more to have it than use it.

[Fla Dem]

19. It's one of the best subscriptions I have at $139 annual/$11.58 Monthly.

Free shipping and Amazon Prime streaming. Netflix is $10.78 M/ $126.36 Annually w/o retail.

At $139 per year that's $11.58 per month. In shipping charges alone, I would pay more that from other retailers. I ordered an item from a non-Amazon retailer the other day and shipping charges were $12.76. Not only that, if I returned the item, I'll have to pay shipping charges. Order several items from LLBean, and you only get free shipping if your order is over a certain level. Returned one of their items and had to pay shipping. Amazon returns are easy and NO CHARGE!

I'm sure there are people who have issues with Amazon for one reason or another, and if so, so be it. But I love Amazon and have been a customer for close to 20 years.

I do support the unions and have no problem with them organizing against Amazon. All employees should be paid a fair salary, with reasonable benefits and working conditions.

https://www.payscale.com/research/US/Employer=Amazon.com_Inc/Reviews

[Meadowoak]

28. It's a bargain, I live in rural KY, and if I use the free shipping one time per month

I'm ahead, versus driving around 100 miles round trip to any kind of a store. Plus prime video is a bonus.

[QED]

20. I'm keeping it.

I have a great niece in another state that I send little gifts to every few weeks. Free shipping for a $7 book? I'll take it. I know that because of the annual fee it isn't exactly "free" shipping, but it's darn convenient. I also buy stuff for myself - wow I can get that tomorrow and I don't need to put on pants and go to the store.

[Prairie_Seagull]

21. I have never minded paying for an honest service.

Been a prime member for many years and at first I thought it was fantastic. I do not know what has changed but changed it has. In the beginning for me it seemed straight forward. With is changed search function and constant pushing to try to force pay 'channels', now intermixed with free video content. Seems to me they are marching toward _______.

Going to be cutting the cable soon so not ready yet to dump them yet but it is a consideration. Are they still an honest service?

[canuckledragger]

44. I gave up on their videos a long time ago because of crap like that.

And their movie library is just full of crap that nobody ever watched when they were originally released either.

No, they're not an honest service pulling the shady stuff they do.

[Johnny2X2X]

30. I agree

Prime video is worth the cost alone.

I do think Amazon prices aren’t as good as they used to be. You can find better pricing for many items at local stores now.

[Autumn]

25. Free shipping if it's Prime. I also get Prime video and I happily sign up every year.

[TeamProg]

29. I get free shipping WITHOUT Prime. I have seen unit prices GO UP after I was spoofed into signing up

for Prime.

Then it's a hassle to cancel it.

[Autumn]

37. I've never been talked into signing up. My daughter signed up and now uses mine.

It was easy for her to cancel her prime account.

[TeamProg]

43. I was never "talked into" signing up, that's an idiotic statement. If one does not click the

box that says "no thanks" then Amazon signs you up and they'll bill you every 30 days.

That's not being talked into, that is a MUST OPT-OUT / 'tricked into' policy that not everyone observes.

Amazon is a horrible company to support. Bad for workers, bad for small retailers, bad for the country as a whole and with a shameless CEO. You are going out of your way to give money to an oligarch.


"""37. I've never been talked into signing up. My daughter signed up and now uses mine.
It was easy for her to cancel her prime account."""""

"Easy" because she KNEW she was signed up, there's a difference.

She later canceled hers.. must be great.

[Autumn]

48. Talk about an idiotic statement.

[TeamProg]

27. About time! Watch the GQP object !! nt

[Scrivener7]

32. I cancelled prime and don't miss it. You get free

shipping on orders larger than $35 anyway and I'm not noticing a delay in delivery. Once a year at Christmas time I rejoin for a month and catch up on any videos they have exclusively that I want to see.

[Novara]

33. I hope it goes to a class action

Because all of us who have it will be part of the class.

And then they'll jack up the rates....

[twodogsbarking]

35. Duping people on the internet. Who would have thought.

[wishstar]

36. My 30 day trial subscription worked well and was easy to cancel and they never contacted me again

I had several merchandise orders I wanted to do in December 2021 so I requested the trial one month Prime subscription to get the best prices and free quick shipping. Amazon had option to indicate if I wanted to cancel so I hit button to cancel after getting all of my orders. Their cancellation system automatically extended my trial until the end of the month and then they canceled me, notifying me by email. I was never billed any subscription fees and they never contacted me again. Whole process was easy and all my orders were delivered to my satisfaction. Only reason I didn't continue was that I had bought everything we needed at the time and as it turned out we haven't needed to order online since then.

[Auggie]

38. I've seen there efforts from a mile way and have never been duped

I sign up when I want to. And cancelling is easy.

IMO this will be difficult to prove.

[tavernier]

41. Don't mess with my Prime please!!

One of the best things to come along in years as far as I’m concerned. I save a bundle and pretty much order everything but groceries.

[progressoid]

42. Like every other recurring subscription service out there?

[republianmushroom]

45. one born every minute, has been stated.

[TeamProg]

46. You can't label yourself as "Pro Union" and still subscribe to Amazon. nt

[ExWhoDoesntCare]

64. There are no union grocers where I am.

Should I starve, then?

Fewer than 20% of businesses have unions. Are we supposed to do without the 80% of goods and services over that?

What a bloody ignorant remark.

[TeamProg]

67. Amazon workers have been attempting unionize with great resistance.

Last edited Thu Jun 22, 2023, 11:25 AM - Edit history (1)

Well then you have no choice, right?

Would you cross a picket line if they attempted to unionize? That is what subscribing to Amazon is.

Big difference between Amazon and your local grocer.

Thinking is helpful.

See:
How Amazon Crushes Unions

https://www.nytimes.com/2021/03/16/technology/amazon-unions-virginia.html

[Joinfortmill]

50. To Prime or Not To Prime...

First: They ripped off their customers. That seems to be a fact.
Second: It's convenient for sure, but what do you actually get for your money? Not that much it seems. Other vendors like Walmart and Walgreens that charge shipping have total pricing including shipping within a dollar or two of Amazon. I just recently found this out when I needed stuff I couldn't't get on Amazon.
Third: Prime videos/tv/music sucks. I never found much to watch or listen to that I couldn' find somewhere else.
Fourth: Competition is good, so I'll keep seeking out these other vendors.

[ExWhoDoesntCare]

66. First: They didn't rip off anyone.

Nobody tricked me into signing up, and when I wanted to cancel, I had zero problems doing so. When I had to cancel then re-new my account because my cell phone provider has Prime as a customer perk, I had zero problems doing it.

It's not Amazon's fault if people are inept with the internet.

Second: If you order from them often, you get a great deal. The shipping is faster for Prime members than it is for the $35 and up crowd. And you also get plenty of perks, like their Prime Reading, which lets you "check out" books for free, up to ten at a time, and Prime Video.

Third: Well, if you think options like exclusive access to The Marvelous Mrs. Maisel, a critically acclaimed series, sucks, or that Good Girls Revolt sucks, well, that says more about you than Amazon, because both are amazing.

They offer a bunch more things to watch, but some things rotate through. Some rotations are better than others. Way it goes.

Overall, APV is much better than filth like Hulu, that forces ads on you, even when you pay for it. Amazon is less than $12 a month, no ads for their Prime offerings, while Hulu with no ads is $15...and with Hulu you don't get the books to read or the free shipping on items, either.

Is Prime perfect? Of course not. But it's a good deal, and a fair deal, as long as you bother to learn what you're getting into--and how to get out of it if you must. Amazon doesn't make any of it a mystery.

[EX500rider]

70. I 2nd "the Marvelous Mrs Maisel" being awesome

Plus I have to have "The Rings of Power" & "The Grand Tour"
I would pay for Prime just for those!

[elocs]

52. I was in no way duped into getting Prime & at $7/month it is one of the best buys I've ever gotten.

Free Prime shipping as well as easy returns are great. I've even had things that were returnable and was told just to keep it.

[mike_c]

53. I think Prime is a great deal

We joined as soon as it began. I was building a trailer and needed to buy lots of heavy tools. I saved enough on shipping the first month or two to pay for the expense and more. We lived in a rural region of Northern California, where brick and mortar shopping was very limited. Ten+ years later we've moved to a more suburban community, but we still order lots from Amazon as we get older, preferring it to driving long distances and spending hours searching for goods.

Anyway, I'm a happy Prime subscriber.

[intrepidity]

54. I object to finding something is available to watch on Prime

but that you have to pay an additional charge for. That's why I purchased a subscription to Amazon Prime, I naively thought.

[Hekate]

55. Pro Tip from me: check everything at each step, & NEVER sign up for One Click purchasing...

To get free shipping, check each item to make sure the vendor offers it. If you really want the item anyway, check how much the shipping is.

During the checkout process, check again. Free shipping doesn’t automatically get posted, because they prompt you to choose between two levels of expedited shipping, each more expensive than the last (do you really need this thing tomorrow?) Or Prime— Every step of the way you have to reject Prime. If all or part of your purchases is eligible for free shipping, check that option, and all or most of your shipping fee will disappear.

Also check the quantity ordered. Sometimes I have an item in my shopping cart and in wait- for-later, which can make the computer think I want two of it.

I think you can see why I don’t want One Click purchasing.

As for Prime, if they offer you a free 30-day subscription and you want to try it, mark your calendar and keep an eye in the date so you can cancel without penalty. I did that once when there was a movie I wanted to see, and had no problem.

That’s all. I’ve been a customer for close to 25 years, and buy mostly books, altho since COVID and the loss of so many stores I’ve expanded my purchasing range.





.

[PatSeg]

63. I agree about One Click purchasing

I never use the "One Click" option. I like complete control. For some items I go with the delayed shipping and take the digital credit and others I prefer faster shipping. I also have had problems with the quantity and a couple of times I received two of something because I didn't doublecheck the quantity.

I am pretty much housebound these days, so I rely a lot on Amazon for my shopping, though I try to order from smaller businesses when I can.

[snot]

57. I'd be more excited if they started enforcing antitrust laws.

It seems very clear that amazon has used anticompetitive practices for years to drive others out of business by aggressively underpricing goods and services; and then, once it's become more or less the sole provider, it starts raising the prices and cutting back or charging more for the services.

The process isn't complete yet, but once it is, we'll be more or less at the mercy of our "company store."