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Ladybbird 12-07-23 11:39

US. Govt Crackdown on Amazon -Anti Consumer/Competitive Behaviour
 
Amazon Targeted by US. Government Crackdown on Anti-Consumer, Anti-Competitive Behaviour


Prime Day, the biggest event of the year at e-commerce giant Amazon for members of its loyalty program, Prime, started yesterday.

The sale (which is actually two days) offers discounts on everything from clothing to toys to small appliances.

CBC NEWS 12 JUL 2023


https://ci3.googleusercontent.com/pr...JUSTOoXP8VgoaM


A package from Amazon Prime is loaded for delivery on a UPS truck in New York. The U.S. Federal Trade Commission is suing Amazon for allegedly duping customers into signing up for its loyalty program Prime.


While consumers are likely to be on the hunt for deals, the most beneficial deal for the company may be to settle a brewing dispute with regulators about some of its alleged business practices.

Last month, the U.S. Federal Trade Commission sued the company for allegedly duping customers into signing up for Prime — which brings perks such as lower prices, faster deliveries and a streaming video and music service.

The regulator said in a statement the company uses "manipulative, coercive, or deceptive user-interface designs known as dark patterns to trick consumers" into signing up for Prime subscriptions, which can cost up to $15 US per month.

The company makes it easy to sign up for the service with little more than a single click, but cancelling is another matter altogether. Up until earlier this year, the FTC says, the main way to stop paying for Prime online was to go through a Byzantine process that involved navigating through four different pages, clicking six different times to select through 15 different options to find the one you want: cancel.

The "primary purpose" of the cancellation process was "not to enable subscribers to cancel, but to stop them," the FTC said. "Amazon leadership slowed or rejected changes that would've made it easier for users to cancel Prime because those changes adversely affected Amazon's bottom line."

Amazon says it plans on fighting the lawsuit, calling the FTC's allegations "false on the facts and the law."

The closest Canadian comparable to the FTC is the Competition Bureau.

Spokesperson Marie-Christine Vézina would not say if the bureau is investigating Amazon, noting it is "obliged by law to conduct its work confidentially." The bureau will also not comment on "specific or hypothetical conduct in the marketplace."

But "generally speaking, I can confirm that subscription traps are on the Competition Bureau's radar," she said.



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