Lawsuit Filed Against Amazon for Allegedly Misleading Users with Difficult-to-Cancel Prime Subscriptions

Amazon is facing a lawsuit over allegations that it tricks users into signing up for difficult-to-cancel Prime subscriptions. The complaint, filed by investor DM Cohen Inc., accuses Amazon of knowingly duping millions of consumers into enrolling in its Amazon Prime service. The lawsuit claims that Amazon uses manipulative and deceptive user-interface designs known as “dark patterns” to trick users into signing up for automatically-renewing Prime subscriptions. Additionally, the complaint accuses Amazon of creating a complicated cancellation process, referred to as the “Iliad Flow,” which intentionally makes it difficult for Prime subscribers to end their membership.

The lawsuit highlights various design elements used by Amazon to manipulate users, including “forced action” elements that require users to perform certain actions, “roach motel” elements that complicate processes to discourage users from taking action, “sneaking” or hiding relevant information, and “confirmshaming” which uses emotive wording to guilt users into selecting a preferred option. While Amazon made some changes to its practices in 2021 in response to pressure from the Federal Trade Commission (FTC), the problem persists according to the complaint.

The FTC has also sued Amazon, making similar allegations about the use of dark patterns and a complex cancellation process. The agency claims that Amazon intentionally designed its process for unsubscribing from Prime to be difficult, even referring to it internally as the “Iliad.” The FTC alleges that Amazon leadership rejected user experience changes that would have simplified the cancellation process because they would have affected the company’s bottom line. In order to cancel Prime, consumers must navigate through multiple pages with confusing options, often being taken out of the cancellation process and having to start over. Only one option, the fifth and final button labeled “End Now,” immediately cancels the membership.

The FTC also accuses Amazon of nonconsensual enrollment, enrolling customers in Prime without their consent using deceptive dark patterns. The agency claims that despite the issue being known internally, Amazon’s leadership avoided making changes that would reduce nonconsensual enrollment due to the potential negative impact on the company’s finances. The FTC also accuses Amazon of delaying the process of providing information requested by investigators.

Amazon disputes the allegations, stating that the claims made by the FTC and the investor are false. The company asserts that it makes the process of joining or leaving Prime clear and simple for customers and continuously looks for ways to improve the customer experience.

This lawsuit against Amazon sheds light on the practices of the e-commerce giant and raises concerns about transparency and user experience. If the allegations are proven true, it could have significant consequences for Amazon and its relationship with its customers. The use of dark patterns and a complex cancellation process can erode trust and create frustration among users. As the case unfolds, it remains to be seen how Amazon will address these allegations and whether changes will be made to improve transparency and user control over Prime subscriptions.