FTC Sues Amazon for Misleading Prime Signup and Cancellation Process

On Wednesday, the Federal Trade Commission sued Amazon claiming that the retailer duped millions of customers into signing up for its iconic Prime program then “sabotaged” their attempts to cancel their memberships.

FTC Chair Lina Khan said in a statement, “Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money.”

The agency has been investigating the signup and cancellation process of Amazon Prime since March 2021. As part of the lawsuit, the FTC claims Amazon violated the Restore Online Shoppers’ Confidence Act and the FTC act by using deceptive design tactics to encourage consumers to make a specific choice and enroll in the Prime program.

Some of these tactics included making it difficult for consumers to make an Amazon purchase without a Prime membership and implementing a button “that instructed users to complete their transaction did not clearly state that they were also agreeing to join Prime for a recurring subscription,” per CNBC.

This is the third lawsuit the FTC filed against Amazon this month. Amazon claims the company does not agree with the FTC’s accusations but will settle the matter in order to move forward.