The US Federal Trade Commission (FTC) has accused Amazon of using “manipulative” website designs to trick customers into signing up for automatically renewing Prime subscriptions and making it difficult to cancel. The agency alleges that the company used tactics such as auto-enrolment during purchases and a cumbersome cancellation process. In this article, we’ll explore the FTC’s lawsuit against Amazon, its impact on consumers and how it fits in with other recent actions taken by the commission. Amazon Accused of Tricking Prime Customers!
Claims Against Amazon
The FTC filed a complaint in federal court alleging that Amazon used manipulative website designs that made it challenging for users to opt-out of automatic enrolment in Prime subscriptions. According to the complaint, these changes would negatively affect Amazon’s bottom line if more people opted out rather than continued paying for their subscription.
Moreover, when customers sought to cancel their membership, they were put through a long and arduous process known internally as “Iliad.” The FTC claims that this practice broke laws aimed at protecting shoppers.
Amazon denies these allegations, calling them false on both facts and law. It says that customers love Prime because it offers clear terms and easy cancellation processes.
Impact on Consumers
More than 200 million people worldwide subscribe to Prime services which offer access to music streaming, video content libraries like Netflix or Hulu+, free shipping perks among many others.
If found guilty by a court order forcing change practices alongside financial penalties being imposed upon them could have implications not just within America but globally too; potentially resulting in increased scrutiny from regulators worldwide who may be keenly interested following such developments closely given their own concerns about fair competition policies online shopping platforms need adhere towards maintaining an equal playing field amongst all comers irrespective size shape form or origin country domicile basis etc…
Recent Actions Taken By FTC
This is not the first time that the FTC has investigated or taken action against tech giants concerning consumer protection. Last month, Amazon agreed to pay $25m to settle charges that it had violated child privacy laws by keeping recordings children made on Alexa.
Amazon also agreed to pay $5.8m in a separate settlement with the FTC over claims that Ring (a doorbell company purchased by Amazon in 2018) violated privacy protections by giving staff unrestricted access to customer videos and failing to implement precautions against hackers.
The lawsuit filed against Amazon represents another example of how regulators are becoming more aggressive about policing online shopping platforms’ practices when it comes down specifically towards consumer rights protection issues such as those highlighted here concerning automatic renewals subscription cancellations etcetera which companies like Amazon have been accused of manipulating customers into continuing paying for their services without proper consent given beforehand. The outcome remains uncertain, but one thing is sure: this lawsuit will likely trigger further scrutiny from regulatory bodies worldwide regarding fair competition policies amongst different players within the industry sectors concerned moving forward.
Amazon Accused of Tricking Prime Customers, written by Hoda F.
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