Lawsuit against Amazon: Customers were foisted on Prime, the termination was boycotted

lawsuit in the United States
“Manipulation, coercion and deception”: Amazon is said to have foisted Prime on customers and made terminations more difficult

Because of its Prime subscription, Amazon has to answer in court in the United States. And justify themselves for all sorts of questionable practices.

Faster and free shipping, a video and music streaming offer and lots of discounts: the Amazon Prime subscription service is actually an attractive offer for many customers of the retail giant. But if you believe the US trade regulator FTC, not all of the subscribers are prime customers voluntarily. The authority has now filed a lawsuit against the group.

“For years, the Amazon company has deliberately duped millions of customers into subscribing to its Prime offering without their knowledge,” alleges the agency in the lawsuit filed in a court in Amazon’s native Washington on Wednesday. The authority wants to ban the company permanently. And also obtain compensation for the customers and fines for the group.

“Manipulation, Coercion and Deception”

Specifically, there is a clear allegation: Amazon is said to have deliberately made it easy to accidentally take out a Prime subscription. On the other hand, the group made it difficult for customers to terminate the contract. A click on “terminate membership” did not lead to termination, but only opened a page with the actual termination process. This then included four more websites, at least six clicks and a menu with 15 options. On the other hand, completing the subscription only takes a click or two.

In addition, the authority accuses the company of “using manipulation, coercion and deception in its user interface, so-called dark patterns, in order to foist customers with an automatically extended Prime subscription.” Dark patterns are user guidance that specifically highlights the buttons desired by the company on websites or in apps and makes other options so inconspicuous that they are overlooked. Customers are thus forced to act against their actual interests.

In Amazon’s case, that was extreme. On the first page of the cancellation process, customers were reminded of “your journey” with Amazon and their orders, on the second page they were then offered alternatives to the current subscription and, in some cases, more attractive prices. On both sides you had to click on the correct one of several options – or the termination was canceled. On the last page you even had to choose between five different options. Only one of them actually ended the subscription.

The Odyssey of Termination

The lawsuit argues that Amazon was also aware of how difficult the termination was. According to the FTC, the termination process was internally named “Iliad,” after the Greek epic about the battle for Troy — which eventually ended with the famous Trojan horse. “Amazon deliberately designed the process as a labyrinth,” the authority is convinced. The company management even prevented changes that would have resulted in a simplification of the process. “Because these changes would have affected Amazon’s profits,” the authority is convinced.

In fact, the group has already reacted in the USA. In response to the agency’s investigations, the process was already slightly simplified in April of this year, the lawsuit emphasizes. The complaint claims that the group was not a real help. Amazon even obstructed the investigation by repeatedly failing to submit requested documents in a timely manner.

FTC boss is targeting Amazon

It was foreseeable that it would eventually crack. FTC boss Lina Khan, who has been in office since 2021, is considered a vocal critic of Amazon. Even while she was studying law, she had caused a sensation with antitrust arguments using the retail giant as an example. The power of the Internet companies and their use of dark patterns are a thorn in her side. The lawsuit against Amazon is part of a larger effort to rein in the long-unbridled freedom of tech giants in the US along the lines of Europe.

Prime is seen as an important part of that effort. Critics argue that the subscription, with its combination of fast and free shipping, binds customers too closely to Amazon – and thus strengthens the retailer’s already extremely strong position in the market. After all, many of the customers would not even consider alternatives for reasons of convenience or cost. Even without being tricked into subscribing.

Amazon has not yet commented on the lawsuit.

Sources: FTC Complaint, New York Times, Ars Technica