On Wednesday, June 21st, the Federal Trade Commission sued Amazon; the F.T.C. accused it of illegally inducing consumers to sign up for Prime and subsequently hindering them from canceling the subscription. This lawsuit was filed in the U.S. District Court for the Western District of Washington; it takes aim at a popular Amazon service that is used by more than 200 million customers. It was argued that Amazon had “duped millions of consumers” into enrolling in Prime, and when consumers wanted to cancel, the process was “knowingly complicated.” The F.T.C. claims that Amazon made it particularly difficult to buy a product in its store without the Prime subscription. One example provided is the company’s “‘repetition and color’ to push customers’ focus to Prime’s promise of free shipping, leading some to subscribe to Prime without ‘informed consent’.”
Amazon responded to the F.T.C.’s claims, mentioning that they are false and “by design, we make it clear and simple for customers to both sign up for or cancel their Prime membership.” In contrast to Amazon’s statement, questions and complaints over how difficult it is to cancel Prime have increased in recent years. A complaint to the D.C. Attorney General in 2021 by Electronic Privacy Information Center said that Amazon’s designs were manipulative, discouraging, and frustrating to users who intended to cancel their memberships.
This same frustration is found when users attempt to cancel various other memberships and subscriptions. Thankfully, subscription tracker apps and services can help you track and cancel unused subscriptions; whether it’s a virtual fitness membership, meal kit deliveries, or streaming services, these following trackers can help you save money:
- Rocket Money – Categorizes expenses and keeps track of subscriptions. This service is also free (with the option to upgrade if preferred)!
- com – This secure service syncs to your bank accounts and credit cards. They make it easy to cancel unwanted subscriptions; their website mentions that customers save over an average of $600 in their first year.
- PocketGuard – Users can create savings goals, track investments, develop daily spend budgets, and cancel subscriptions you no longer use.
Sources:
Gravier, Elizabeth. “Here Are the Best Subscription Trackers to Help You Stay on Top of Recurring Payments.” CNBC, 3 Jan. 2023, www.cnbc.com/select/best-subscription-trackers/.
McCabe, David. “F.T.C. Accuses Amazon of Tricking Users into Subscribing to Prime.” The New York Times, 21 June 2023, www.nytimes.com/2023/06/21/technology/ftc-amazon-prime-lawsuit.html.
