USA sues Amazon for deceiving its customers with Prime – 06/21/2023 – Market

Amazon tricked consumers into signing up for its Prime service and intentionally complicated the cancellation process, according to a complaint filed against the retail giant Wednesday.

The Federal Trade Commission (FTC) lawsuit against Amazon includes four civil charges against the company for “manipulative, coercive and deceptive user interface” and seeks a permanent ban on the conduct, in addition to monetary sanctions.

Membership to the Prime program costs US$ 14.99 per month or US$ 139 per year in the US (R$ 14.90 and R$ 119 in Brazil), in exchange for benefits such as free shipping on products and access to series and movies on streaming Prime Video.

Amazon said the FTC’s allegations were “false in fact and in law” and that it was “plain and simple” to cancel the Prime subscription.

He claimed the regulator announced the case without notice, “in the midst of our discussions with FTC staff members to ensure they understand the facts, context and legal issues, and before we can have a dialogue with the FTC themselves. commissioners before they filed a lawsuit”.

The complaint also highlights the cumbersome procedure customers need to follow to cancel their Prime membership, dubbed the “Iliad” by company executives, in reference to the famous Greek epic written by Homer, referring to the intentional difficulty of completing this process.

“The ‘Iliad Flow’ forced consumers who wanted to cancel the service to navigate a four-page, six-click, 15-option process,” the complaint detailed.

“In contrast, customers could sign up for Prime with one or two clicks,” he emphasized.

The complaint further states that Amazon modified its cancellation process around April 2023, “under substantial pressure from the commission”.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also charging them a lot of money,” said FTC Chairman Lina Khan.

The commission “will continue to vigorously protect Americans against ‘shady defaults’ and other unfair or deceptive practices in digital markets,” he insisted.

With Financial Times