Letter To FTC on Ending Amazon Prime Membership
Coalition Urges FTC To Investigate After Norwegian Report
Ending an Amazon Prime membership is an ordeal that may constitute unfair and deceptive practices under Section 5 of the Federal Trade Commission Act, seven groups including U.S. PIRG petitioned in a letter to the Federal Trade Commission (FTC). The groups are calling on the agency to investigate Amazon Prime’s practices and take appropriate enforcement action against the trillion-dollar company.
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January 2021: Ending an Amazon Prime membership is an ordeal that may constitute unfair and deceptive practices under Section 5 of the Federal Trade Commission Act, seven groups including U.S. PIRG petitioned in a letter to the Federal Trade Commission (FTC). The letter complaint is based on on a new report from the Norwegian Consumer Council, which is backed by other members of the U.S. PIRG-backed TransAtlantic Consumer Dialogue. The groups are calling on the agency to investigate Amazon Prime’s practices and take appropriate enforcement action against the trillion-dollar company. Download the letter (report) from this page. Excerpt:
“The research for this report was conducted in the U.S., the U.K., and the E.U., and the results point to a single conclusion — Amazon Prime’s subscription model is a “roach motel,” where getting in is almost effortless, but escape is an ordeal. The report concludes that Amazon’s practices are designed to unfairly and deceptively undermine the will of the consumer. The practices examined in the report include “forced continuity programs that make it difficult to cancel charges, trick questions to frustrate user choice, and free trials that automatically convert into paid memberships,” which violates a consumer’s right against being charged for products sold through online negative options without a simple cancellation mechanism.”