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For Release
FTC Takes Action Against Amazon for Enrolling Consumers in Amazon Prime
Without Consent and Sabotaging Their Attempts to Cancel
Complaint outlines details of company’s knowing failure to address
non-consensual subscriptions and cancellation trickery
June 21, 2023
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The Federal Trade Commission is taking action against Amazon.com, Inc.
for its years-long effort to enroll consumers into its Prime program
without their consent while knowingly making it difficult for consumers
to cancel their subscriptions to Prime.
In a [166]complaint filed today, the FTC charges that Amazon has
knowingly duped millions of consumers into unknowingly enrolling in
Amazon Prime. Specifically, Amazon used manipulative, coercive, or
deceptive user-interface designs known as “dark patterns” to trick
consumers into enrolling in automatically-renewing Prime subscriptions.
Amazon also knowingly complicated the cancellation process for Prime
subscribers who sought to end their membership. The primary purpose of
its Prime cancellation process was not to enable subscribers to cancel,
but to stop them. Amazon leadership slowed or rejected changes that
would’ve made it easier for users to cancel Prime because those changes
adversely affected Amazon’s bottom line.
“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 M. Khan. “These manipulative
tactics harm consumers and law-abiding businesses alike. The FTC will
continue to vigorously protect Americans from “dark patterns” and other
unfair or deceptive practices in digital markets.”
For now, the FTC’s complaint is significantly redacted, though the FTC
has told the Court it does not find the need for ongoing secrecy
compelling. Nevertheless, the complaint contains a number of
allegations related to the company’s decision not to make changes to
prevent nonconsensual enrollment in Prime and the difficulties
consumers faced in attempting to unsubscribe from the service.
Specifically, the complaint charges that Amazon used so-called “dark
patterns” to cause consumers to enroll in Prime without their consent,
in violation of the FTC Act, and the Restore Online Shoppers’
Confidence Act.
During Amazon’s online checkout process, consumers were faced with
numerous opportunities to subscribe to Amazon Prime at $14.99/month. In
many cases, the option to purchase items on Amazon without subscribing
to Prime was more difficult for consumers to locate. In some cases, the
button presented to consumers to complete their transaction did not
clearly state that in choosing that option they were also agreeing to
join Prime for a recurring subscription.
The FTC charges that Amazon put in place a cancellation process
designed to deter consumers from successfully unsubscribing from Prime.
Previous [167]reporting about the process in the media has noted that
Amazon used the term “Iliad” to describe the process, which the
reporting cites as an allusion to Homer’s epic poem set over
twenty-four books and nearly 16,000 lines about the decade-long Trojan
War.
Consumers who attempted to cancel Prime were faced with multiple steps
to actually accomplish the task of cancelling, according to the
complaint. Consumers had to first locate the cancellation flow, which
Amazon made difficult. Once they located the cancellation flow, they
were redirected to multiple pages that presented several offers to
continue the subscription at a discounted price, to simply turn off the
auto-renew feature, or to decide not to cancel. Only after clicking
through these pages could consumers finally cancel the service.
The complaint notes that Amazon was aware of consumers being
nonconsensually enrolled and the complex and confusing process to
cancel Prime that the company’s executives failed to take any
meaningful steps to address the issues until they were aware of the FTC
investigation. In the complaint, the FTC also alleges that Amazon
attempted to delay and hinder the Commission’s investigation in
multiple instances.
The Commission vote authorizing the staff to file the complaint was
3-0. The complaint was filed in the U.S. District Court for the Western
District of Washington.
NOTE: The Commission files a complaint when it has “reason to believe”
that the named defendants are violating or are about to violate the law
and it appears to the Commission that a proceeding is in the public
interest. The case will be decided by the court.
The staff attorneys on this matter are Jonathan Cohen, Olivia Jerjian,
Max Nardini, and Evan Mendelson of the FTC’s Bureau of Consumer
Protection.
The Federal Trade Commission works to promote competition and
[168]protect and educate consumers. Learn more about consumer topics at
[169]consumer.ftc.gov, or report fraud, scams, and bad business
practices at [170]ReportFraud.ftc.gov. Follow the [171]FTC on social
media, read [172]consumer alerts and the [173]business blog, and
[174]sign up to get the latest FTC news and alerts.
Contact Information
Media Contact
[175]Jay Mayfield
Office of Public Affairs
[176]202-326-2656
Related Cases
[177]Amazon.com, Inc. (ROSCA), FTC v.
For Consumers
Blog: [178]Were you charged for Amazon Prime without your permission?
[179]Getting In and Out of Free Trials, Auto-Renewals, and Negative
Option Subscriptions
For Businesses
Blog: [180]FTC alleges Amazon enrolled people in Prime without consent
and thwarted members’ attempts to cancel
[181]Restore Online Shoppers’ Confidence Act
Topics
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[183]Competition in the Technology Marketplace
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https://www.ftc.gov/about-ftc/commissioners-staff
149.
https://www.ftc.gov/about-ftc/bureaus-offices
150.
https://www.ftc.gov/about-ftc/budget-strategy
151.
https://www.ftc.gov/office-inspector-general
152.
https://www.ftc.gov/about-ftc/careers
153.
https://www.ftc.gov/about-ftc/contact
154.
https://www.ftc.gov/legal-library
155.
https://www.ftc.gov/
156.
https://www.ftc.gov/news-events
157.
https://www.ftc.gov/news-events/news
158.
https://www.ftc.gov/news-events/news/press-releases
159.
https://www.ftc.gov/consumer-protection
160.
https://www.ftc.gov/bureau-consumer-protection
161.
https://www.ftc.gov/terms/deceptivemisleading-conduct
162.
https://www.ftc.gov/industry/technology
163.
https://www.ftc.gov/business-guidance/advertising-marketing
164.
https://www.ftc.gov/business-guidance/advertising-marketing/online-advertising-marketing
165.
https://www.ftc.gov/business-guidance/advertising-marketing/advertising-marketing-basics
166.
https://www.ftc.gov/system/files/ftc_gov/pdf/amazon-rosca-public-redacted-complaint-to_be_filed.pdf
167.
https://www.businessinsider.com/amazon-project-iliad-made-cancel-prime-membership-harer-leaked-data-2022-3
168.
https://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection
169.
https://consumer.ftc.gov/
170.
https://reportfraud.ftc.gov/
171.
https://www.ftc.gov/news-events/stay-connected/social-media
172.
https://consumer.ftc.gov/consumer-alerts
173.
https://www.ftc.gov/business-guidance/blog
174.
https://www.ftc.gov/news-events/stay-connected
175. mailto:
[email protected]
176. tel:202-326-2656
177.
https://www.ftc.gov/legal-library/browse/cases-proceedings/2123050-amazoncom-inc-rosca-ftc-v
178.
https://consumer.ftc.gov/consumer-alerts/2023/06/were-you-charged-amazon-prime-without-your-permission
179.
https://consumer.ftc.gov/articles/getting-and-out-free-trials-auto-renewals-and-negative-option-subscriptions#How to stop a subscription
180.
https://www.ftc.gov/business-guidance/blog/2023/06/ftc-alleges-amazon-enrolled-people-prime-without-consent-thwarted-members-attempts-cancel
181.
https://www.ftc.gov/legal-library/browse/statutes/restore-online-shoppers-confidence-act
182.
https://www.ftc.gov/news-events/topics/truth-advertising/protecting-consumers
183.
https://www.ftc.gov/advice-guidance/competition-guidance/industry-guidance/competition-technology-marketplace
184.
https://www.ftc.gov/news-events/news/press-releases/2023/06/ftc-takes-action-against-amazon-enrolling-consumers-amazon-prime-without-consent-sabotaging-their#top
185.
https://reportfraud.ftc.gov/
186.
https://public.govdelivery.com/accounts/USFTCCONSUMER/subscriber/new?topic_id=USFTCCONSUMER_8
187.
https://www.ftc.gov/legal-library
188.
https://www.ftc.gov/enforcement
189.
https://www.ftc.gov/legal-library/browse/cases-proceedings
190.
https://www.ftc.gov/enforcement/premerger-notification-program
191.
https://www.ftc.gov/enforcement/merger-review
192.
https://www.ftc.gov/enforcement/anticompetitive-practices
193.
https://www.ftc.gov/enforcement/rulemaking
194.
https://www.ftc.gov/legal-library/browse/statutes
195.
https://www.ftc.gov/enforcement/competition-consumer-protection-guidance-documents
196.
https://www.ftc.gov/legal-library/browse/warning-letters
197.
https://www.ftc.gov/enforcement/consumer-sentinel-network
198.
https://www.ftc.gov/enforcement/criminal-liaison-unit
199.
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200.
https://www.ftc.gov/enforcement/penalty-offenses
201.
https://www.ftc.gov/enforcement/competition-matters
202.
https://www.ftc.gov/policy
203.
https://www.ftc.gov/policy/advocacy-research
204.
https://www.ftc.gov/legal-library/browse/advisory-opinions
205.
https://www.ftc.gov/legal-library/browse/cooperation-agreements
206.
https://www.ftc.gov/legal-library/browse/federal-register-notices
207.
https://www.ftc.gov/policy/reports
208.
https://www.ftc.gov/policy/public-comments
209.
https://www.ftc.gov/policy/studies
210.
https://www.ftc.gov/legal-library/browse/testimony
211.
https://www.ftc.gov/legal-library/browse/policy-statements
212.
https://www.ftc.gov/policy/international
213.
http://consumer.ftc.gov/
214.
https://militaryconsumer.gov/
215.
https://consumer.gov/
216.
https://www.ftc.gov/business-guidance
217.
https://www.ftc.gov/advice-guidance/competition-guidance
218.
https://bulkorder.ftc.gov/
219.
https://www.ftc.gov/news-events
220.
https://www.ftc.gov/news-events/news
221.
https://www.ftc.gov/news-events/events
222.
https://www.ftc.gov/news-events/features
223.
https://www.ftc.gov/news-events/topics
224.
https://www.ftc.gov/news-events/data-visualizations
225.
https://www.ftc.gov/news-events/stay-connected
226.
https://www.ftc.gov/about-ftc
227.
https://www.ftc.gov/about-ftc/mission
228.
https://www.ftc.gov/about-ftc/history
229.
https://www.ftc.gov/about-ftc/commissioners-staff
230.
https://www.ftc.gov/about-ftc/bureaus-offices
231.
https://www.ftc.gov/about-ftc/budget-strategy
232.
https://www.ftc.gov/office-inspector-general
233.
https://www.ftc.gov/about-ftc/careers
234.
https://www.ftc.gov/about-ftc/contact
235.
https://www.ftc.gov/policy-notices/privacy-policy
236.
https://www.ftc.gov/policy-notices
237.
https://www.ftc.gov/policy-notices/accessibility
238.
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239.
https://www.ftc.gov/policy-notices/no-fear-act
240.
https://www.ftc.gov/office-inspector-general
241.
https://www.usa.gov/
Hidden links:
243.
https://www.ftc.gov/
244.
https://www.facebook.com/federaltradecommission
245.
https://twitter.com/FTC
246.
https://www.linkedin.com/company/163780/
247.
https://www.youtube.com/ftcvideos
248.
https://www.ftc.gov/news-events/stay-connected#RSS
249.
https://www.ftc.gov/
250.
https://www.facebook.com/federaltradecommission
251.
https://twitter.com/FTC
252.
https://www.linkedin.com/company/163780/
253.
https://www.youtube.com/ftcvideos
254.
https://www.ftc.gov/news-events/stay-connected#RSS