The Federal Trade Commission (FTC) in the United States accused Amazon on Wednesday of forcing millions of consumers to pay without their consent for a premium delivery service that includes Prime Video, the company’s streaming platform, Reuters reported.
The FTC filed a complaint in federal court in Seattle, alleging that “Amazon knowingly misled millions of consumers into unknowingly signing up for Amazon Prime.”
The US regulator also says Amazon used “manipulative, coercive and deceptive” methods to trick its customers into renewing their Amazon Prime memberships using “dark pattern” interfaces.
They are known by this name because they manipulate consumers into paying for goods and services that they do not need or that are sold at prices higher than advertised.
Through its Prime subscriptions, Amazon offers fast and free shipping worldwide, as well as various discounts on its products and services.
Subscribers in the US typically pay $139 a year for the service, which plays a big role in the sales volume of the company founded by Jeff Bezos.
Amazon Prime was sharply blamed in the US
Amazon has more than 200 million subscribers to this service worldwide. The company’s shares immediately fell 1 percent on the stock market after the FTC’s announcement.
US authorities have said they are investigating the process of signing up and renewing Prime subscriptions starting in March 2021.
“Amazon tricked people into signing up without their consent,” the FTC said, alleging that the situation not only frustrated customers who couldn’t cancel their subscriptions, but also cost them “significant” amounts of money.
The complaint describes how customers who tried to cancel their Prime memberships had to go through a series of steps before they could do so, with many giving up along the way.
The FTC also cited media reports that described the Prime cancellation process as “The Iliad,” referencing Homer’s Trojan War epic.
In recent years, Amazon has invested heavily in producing movies and series for Prime Video, entering the streaming market alongside names like Netflix, HBO Max and Disney+. Earlier in June, the company announced that it would launch an ad-supported version of its streaming service, following the competition.
According to JustWatch, an independent site specializing in streaming, Prime Video is the second largest streaming platform in Romania by market share, behind only Netflix. Both platforms appeared with us in 2016, years ahead of competitors.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.