FTC Drags Amazon over Prime Subscription

The United States Federal Trade Commission (FTC) has taken legal action against Amazon again, filing a complaint that alleges the company engaged in deceptive practices to lure customers into purchasing Prime memberships that were intentionally difficult to cancel.

The ecommerce company was recently entangled in a $30+ million privacy violation suit that was targeted at their Ring & Alexa products.

According to NPR, the FTC’s complaint emphasizes that Amazon’s alleged misconduct resulted in consumers unknowingly entering into monthly or annual subscriptions, causing financial harm and raising concerns about consent and transparency.

The Federal Trade Commission alleges that Amazon used tricky designs and a complex cancellation process, with the intention of discouraging users from terminating their subscriptions. In response to the allegations, Amazon issued a statement denying the FTC’s accusations, and re-asserting their customer’s love for the prime membership offerings. The company is expected to defend its practices in court.

Prime subscription costs $139 annually or $14.99 monthly, with an even cheaper $8.99 monthly for Prime Video only, and the perks include free package delivery, video streaming etc. These fees amount to $25 billion of Amazon’s annual revenue, which was $513.98 billion in 2022.

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