Amazon under scrutiny for tricking customers into buying Prime memberships
The Central Consumer Protection Authority (CCPA) has issued notices to Amazon India, accusing the company of employing "dark patterns" on its website to trick customers into purchasing Amazon Prime memberships, reported Moneycontrol. One of the notices, sent in late November, was based on complaints received by the consumer protection agency regarding Amazon's Prime subscription model. "Amazon.in has knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service ("Nonconsensual Enrollees" or "Nonconsensual Enrollment")," the notice read.
Amazon used dark patterns to manipulate consumers: CCPA
According to the CCPA, Amazon utilized manipulative, coercive, or deceptive user-interface designs, known as "dark patterns," to trick users into automatically renewing their Prime subscriptions. A senior official told Moneycontrol, "While subscribing to Amazon is an easy process, subscribing out of it is either impossible or extremely difficult, making it a type of unfair trade practice, bringing it under the purview of consumer affairs." The official noted that while subscribing requires a single click, cancellation involves 8-10 steps.
New guidelines are targeting dark patterns in e-commerce
On December 1, the Indian government introduced guidelines to prevent and regulate dark patterns in e-commerce. These guidelines define a "subscription trap" as making it impossible or overly complicated to cancel a paid subscription; concealing the cancellation option; or forcing users to provide payment details or authorization for auto-debits to access a free subscription. Amazon has been accused of engaging in both "subscription trap" and pre-ticking practices.
Amazon's meeting with the Consumer Affairs Ministry postponed
Although the Ministry of Consumer Affairs initially scheduled a hearing with Amazon representatives for December 12, the company requested an extension, which was granted. The meeting is now set for the first week of January. "We haven't heard them yet and would like to give them a chance to explain. A meeting in this regard had been set for December 12 but has been postponed after they requested it," a source told Moneycontrol.
US authority has also accused Amazon of employing bad practices
Another insider familiar with the ongoing discussions alleged that Amazon employs dark patterns such as forced actions, interface interference, misdirection, and confirm-shaming on its website. "The company is also making some products only available on delivery if a user subscribes to its Prime membership," the source told Moneycontrol. The US Federal Trade Commission (FTC) has also previously accused Amazon of enrolling consumers into Prime without their consent and making it tough for them to cancel.
