Amazon faces questions over subscription service issues

According to foreign media Insider , sources said that Amazon is facing inquiries from the U.S. Federal Trade Commission (FTC) due to problems with its user subscription services .

Since at least 2017, Amazon has worried about whether the design of its website’s user interface could make consumers feel they were being manipulated into signing up for Prime, according to the report.

It is understood that these designs are often referred to as "dark patterns" and use " misleading " images or intentionally vague information to make customers take unconscious actions . For example, at checkout, just click the "Prime + FREE Two-Day Delivery with Prime" label , and consumers will be automatically registered without additional confirmation steps and enter a 30-day free trial of the Amazon Prime program .

The program then converts to a paid membership unless the user cancels it automatically . In the United States, its users have to jump through many pages to end their subscription .

In addition to the undisclosed internal documents , Insider also interviewed six current and former Amazon employees who said Amazon had known about these complaints for years but had not taken serious action. The documents also showed that in some cases, the company had proposed and considered fixes for the above problems , but they slowed subscription growth during testing and were shelved.

This year , FTC Chairwoman Lina Khan also publicly issued a general warning about so-called "dark patterns" and subscription models that are difficult to cancel. The FTC has asked Amazon about its subscription practices in recent years , and the company 's lawyers held private meetings with members of the Prime team in 2021 to respond to those inquiries, according to people familiar with the matter.

Insider also said that internal documents showed that the problems with registration were not limited to the Prime service , and Amazon was also seeking to clarify issues about other subscription services .

In response to these questions , Amazon stated in a previous response to Insider that the Prime registration and cancellation process is simple and transparent, and clearly shows customers the choices and the meaning of these choices.

Jamil Ghani, vice president of Amazon Prime, also said in a statement that customer transparency and trust are their top priorities. By design, we make it clear and simple for customers to sign up for or cancel their Prime membership.

It is understood that this year Amazon has also proposed a clearer subscription and cancellation process for Prime, Prime Video, Kindle Unlimited and Amazon Music services. Despite facing some unresolved issues, the number of Amazon Prime members continues to rise.

Amazon

Inquiry

Subscription Services