Amazon accused of 'knowingly duping millions of customers into signing up for Prime'
The US has accused Amazon of tricking customers into signing up for automatic renewal on their Prime subscriptions
PA
The US has accused Amazon of tricking customers into signing up for automatic renewal on their Prime subscriptions - and making it difficult to cancel.
The Federal Trade Commission (FTC), the country's consumer rights watchdog, made the claims in a lawsuit.
It cited alleged "manipulative" website designs and claimed the company "knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime."
Amazon rejected the charges, calling them "false on the facts and the law".
Amazon rejected the charges, calling them 'false on the facts and the law'
PA
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.
It seeks civil penalties and a permanent injunction to prevent future violations.
More than 200 million people subscribe to Prime globally with the service offering shipping perks, access to streaming movies and more, for $139 a year or $14.99 monthly in the US and £95 per year in the UK.
The FTC said Amazon used website designs that pushed customers into agreeing to enrol in Prime and have the subscription automatically renew as they were making purchases.
The company attempted to make it difficult for users to opt out of auto-enrolment because "those changes would also negatively affect Amazon's bottom line", the agency alleged in the complaint.
It also said Amazon put customers seeking to cancel through a cumbersome "four-page, six-click, fifteen option" process.
Their cancellation policy was altered shortly before the lawsuit was filed.
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 company attempted to make it difficult for users to opt out of auto-enrolment because 'those changes would also negatively affect Amazon's bottom line'
PA
"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said.
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."
The FTC had been investigating Amazon's Prime programme since 2021.
The lawsuit marks the third action from the FTC involving Amazon in recent weeks.
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