In a heavily redacted complaint, the FTC complains about nonconsensual Amazon Prime enrollment and Amazon tricking customers.
Image from FTC Amazon Complaint.
The complaint is ridiculously redacted. The whole thing should be public. Paragraphs 7 and 8, not redacted, gets to the heart of the matter.
For years, Amazon also knowingly complicated the cancellation process for Prime subscribers who sought to end their membership. Under significant pressure from the Commission—and aware that its practices are legally indefensible—Amazon substantially revamped its Prime cancellation process for at least some subscribers shortly before the filing of this Complaint. However, prior to that time, the primary purpose of the Prime cancellation process was not to enable subscribers to cancel, but rather to thwart them. Fittingly, Amazon named that process “Iliad,” which refers to Homer’s epic about the long, arduous Trojan War. Amazon designed the Iliad cancellation process (“Iliad Flow”) to be labyrinthine, and Amazon and its leadership—including Lindsay, Grandinetti, and Ghani—slowed or rejected user experience changes that would have made Iliad simpler for consumers because those changes
adversely affected Amazon’s bottom line.As with Nonconsensual Enrollment, the Iliad Flow’s complexity resulted from Amazon’s use of dark patterns—manipulative design elements that trick users into making decisions they would not otherwise have made.
More Amazon Redactions
I can understand taking out customer names, but nothing else. This is so beyond ridiculous one has to wonder what the FTC is hiding.
FTC chair Lina Khan has it in for Amazon, Google, every large tech company, and like the EU would be happy to bust them all up. That does not make all of Khan’s allegations false, but her motives are not exactly sincere.
FTC Sues Amazon Over ‘Manipulative’ Tactics Used to Enroll Millions in Prime
The WSJ reports FTC Sues Amazon Over ‘Manipulative’ Tactics Used to Enroll Millions in Prime
The FTC’s complaint alleged that Amazon used “manipulative, coercive, or deceptive user interface designs known as dark patterns” to dupe users into automatically renewing Prime subscription.
For years, Amazon made it easy to enroll in Prime with one or two clicks, but created a “four-page, six-click, fifteen-option cancellation process” known internally as “the Iliad Flow,” the FTC said, in an apparent reference to Homer’s epic about the Trojan War. The agency said the “labyrinthine” procedure was designed to make it cumbersome and confusing for customers to cancel Prime.
Amazon revamped its Prime cancellation process for some subscribers in April, shortly before the FTC filed the case, according to the complaint. Amazon knew its policies were “legally indefensible,” the agency alleged.
An Amazon spokesman dismissed the FTC’s allegations as “false on the facts and the law.”
“By design we make it clear and simple for customers to both sign up for or cancel their Prime membership,” he said. “We look forward to proving our case in court.”
Amazon said the FTC filed the lawsuit without allowing the company to explain to the agency’s three commissioners why it shouldn’t be sued, bypassing a step that is typically part of the process for companies facing an enforcement action.
Whether Amazon did anything wrong, it may have corrected that wrongdoing in April.
The normal process is to offer companies a chance to meet with the FTC. Instead, the FTC went straight to a complaint the public cannot even see.
The WSJ commented “JPMorgan analysts estimated in June 2022 that a Prime subscription would cost $1,100 a year if its included benefits were sold separately.“
“About 72% of all U.S. households, or 96 million, have a paid Prime membership, according to recent estimates from market research firm Insider Intelligence.“
How many Prime customers are unhappy? For me, that’s the issue. Those who are unhappy should have an easy way to cancel.
Are You Happy With Prime?
We are. But we would rather the cost be cheaper. It’s now $139. With free shipping and free returns, it does not take much to save $139.
The point Prime no longer pays for itself depends on how much stuff you buy.
OK, there should be an easy way to cancel. Since we have never tried, I cannot say what it is like.
Price Pressures
One of the complaints I have heard against Amazon is that you can often find the price cheaper somewhere else.
Yes, it pays to shop around. A few days ago, I bought a DeWalt tool at Home Depot. The exact same item was $50 cheaper at Amazon.
The price at HD was $10 above the Dewalt list price. HD initially said it would not compete with Amazon, but a manager relented.
I happen to have a musical tribute.
My Mamma Told Me
My momma told me, you better shop around.
I no longer have Amazon but my issue was not cancelling. They rarely had the latest model I wanted. One involved LED exterior lights. The newer model burned half the amount of power as the older model but they only had the older model for dirt cheap trying to dump them. No thanks.
Another item was a commercial weed trimmer. Again, the newer model was far superior but they only had the old model at a massive discount.
I do however have a music account and a Show for my widowed mother which she truly loves. Being able to access all her old music without any buttons…amazing. I also have her doorbell hooked up to it so she can see who is at the door.
The shopping aspect however is garbage for savvy shoppers.
Of late in my non-metro area, prime has become a joke. Estimated delivery times are often a week out or if they are the usual two days, the delivery is “we’re sorry” late.
At this point the only reason to have prime is for the video side and that is a dubious value (at least in my case)
You forgot bragging rights – “Yes, we have Prime and use it all the time!”
I have prime and love it. I have a family music plan for an extra $99/yr. All 4 members of my family use it. Far as I can tell, it has every song. We also all watch prime video.
I like buying from amazon because the selection is far superior than what I can find at a local retailer. Sometimes the price is a little higher, but I don’t have to drive or waste time at the store. Returns are very easy at the local UPS store.
I don’t doubt cancelling can be difficult, but so is changing my plans at T-Mobile and Verizon. Their web sites always malfunction and I have to call and then turn down 10 offers to make any changes.
I don’t have Prime and I love not having it because the cash I didn’t spend keeps accumulating in my stupid-things-I-didn’t-purchase account. I did try the 30-day offers a few times, but they couldn’t keep the 2 day promise. Then again I endeavor
to plan for things.
A definite behavior from Amazon. They encourage you to buy enough to get “free” shipping, then they select a cost option for the shipping. If you don’t notice it, you’ll pay for the “free” shipping.
If you buy anything without a Prime membership they harass and harangue you with dummy links and creative formatting to try and get you to accept a Prime membership.
They even will let you cancel your membership, then they stop the service immediately, and DON’T refund any of the membership cost. It’s unethical to keep the membership money AND not provide the service too upon cancellation!
Amazon used to be the model for exponential popular growth, but seasons change. They are well on their way to being the model of how to ruin a once-great customer experience.
They can’t deliver in two days here anyway, so Prime is a moot point.
Outside of the basics I am at the point where most things I want/need are not available in my small town or the immediate area. OTA tv is lousy and cable ridiculous for what I want. prime video and one or two more channels and I’m all set
Like many people I have a love-hate relationship with Amazon.
Love: The in-person retail experience is so bad now that I when I think of something I need I instead open my cellphone, order it, and it shows up in a day or two at my door. I rarely go to a retail setting outside of grocery stores and an occasional Costco run for bulk items. Since I order something pretty much once a week, Prime is definitely is worth it for me. Things like video streaming, music and such (which are nothing special) are extras that come with it, but since I use other services for those, it’s gravy.
Hate:
– The number of cheap Chinese items is overwhelming, and Amazon does a horrible job of keeping dicey sellers off their site. There is no way I would buy anything health related on Amazon since you have no clue if what you are getting is real, fell off the back of a truck, etc. Ending up with knockoff golf balls is one thing, something that I put on my person is another, so the supermarket keeps my business there.
– I’m on the opposite side of the political spectrum as Ms.Kahn, but we are aligned on our distaste of big tech. As noted above, however, the convenience of tapping and ordering pretty much anything I need and arriving in 24-48 hours overwhelms those feelings, so I grumble about their market power, elbowing of smaller competitors, their leftward tilt and digital book burning, but it doesn’t stop me from using their services.
In this case I will grab the popcorn and watch the government beat up on Amazon a bit. They will pay a fine, say a few mea culpas, change some things to quiet the regulators, and go on down the road not fundamentally changing who they are. Maybe they’ll learn to pay off more lobbyists in DC to keep the regulators at bay.
Whatever,
You’re spot on about Amazon having a huge influx of random, non-reputable sellers. The best way to avoid this is look specifically for items that are shipped and sold by Amazon.
However, there is no way to avoid a knockoff being sold of the same thing. Amazon has been flooded with products that you can buy off of Ali Express. While it is good for disposable stuff, it’s frustrating when you’re looking for name brands.
It’s a newer trend that wasn’t really an issue before 2020.
Here in France Prime is about 75 euro so it’s affordable. It’s got all the media of course. I have satellite TV but I hardly use either one. We use the delivery a lot. Prime is good for sending things to the US and that’s good.
I really don’t have anything to say. I just wanted to test the new system.
Equally problematic for Amazon…
1) The ‘Amazon recommended’ category does NOT reflect Amazon customers’ evaluations or purchases (more than likely Amazon ‘brand’ or high profit margin products.)
2) Amazon, and all internet retailers for that matter) should be required to list the place of manufacture within 2 or 3 lines of the price listing. In fact, it is the first step to reducing the trade deficit. Brick-and-mortar retail have their products on display, where the place of manufacturer is readily available on the packaging. I am tired of buying ‘made in China’ without KNOWING. Equally, if the retail fraud underway: the name is not ‘Wu Flung Dung Co.’, but ‘Subterfuge Inc’..
All started when Amazon hired Sum Ting Wong as marketing director.
For years I avoided Prime, but took a free trial from time to time. Ultimately I got it for the ability to stream Prime Video with other free means of having something on the TV, like Tubi etc. What I do not want ever with anything is auto-billing. The last time I tried to cancel Prime after renewing, which I do every time, it was so difficult that I had to contact Amazon to get it done. Also, I don’t like the latest price, but it’s the only way we are going to have TV. I think auto-billing is a very bad thing, opening oneself to passively being screwed. I cancel everything that forces it, like Prime and LinkedIn, and avoid others like cellular family plans that don’t do it if it’s an individual phone service. I have found that when something expires, the price may go down in order to incentivize continuing the service. Car insurance/road service, on the other hand, gives a discount for auto-billing. On that, I’d rather pay more to avoid automatically having my money taken.
Upvote
Thanks, Jack – I saw a Like option in the email with your reply and clicked it, but I see no evidence of it here. Funny how everyone is commenting as a test, though the subject is relatable.
I asked for a linkable comments count on the home page as well.
I can get things done here much faster than the Maven, but that was mostly nonexistent.
How about having AI assist the commenter?
Seriously, edit capability would be nice/
Definitely need edit capabilities.
I’m an idiot.
I need editability.
Yup.
When I write my grammar looks fine, however when I post mistakes appear lol.
Up votes and down votes would be good like Reddit.
Upvote and edit would be nice.
Another desirable idea that I was looking for and couldn’t find anywhere is a favorites list, a shopping list without a checkout. Say I always want to read comments from ABC, but didn’t care about others. I put him into my favorite list, and his/hers comments would be marked by green icon or whatever. Personalized icons are also helpful.
Is there a way of getting back to the list of “Top Stories” with backing the browser? I have no option under the Menu, only Economics or Politics.
without backing the browser that should say.
I just created a new account the other day. I did not want Prime.
The site constantly pushes prime. And when you go to ship, if you are not careful and hit the prime shipping button then you are signed up for 30 days.
I canceled Prime without trouble a few days later, but I was in the trail phase accidently (engineered accident).
I did the same. Why would I pay $150 a year to save two days.
You also get Prime for free shipping and Prime TV which is valuable to cord cutters.
Its easy to save 150 worth of shipping.
$150?
Maybe, if you’re an impatient idiot with zero self control.
Otherwise just choose free shipping and wait a few more days.
Not sure what you’re ordering but lots of stuff I buy doesn’t have free shipping unless you’re a Prime member.
Also, the whole reason I buy with Prime is because it’s coming in the next day or so. I tend not to order stuff till I need it and then when I need it, I need it now, not a week from now.
I find Prime has better content than Netflix and cheaper.
Free shipping is a free bonus.