Consumer Council takes legal action against Amazon over obstructive Amazon Prime cancellation process.
Excerpt
Our analysis
The Consumer Council initiated legal action against Amazon, alleging unfair trading practices and violations of the Marketing Act. The case centers around Amazon's deceptive and confusing practices aimed at hindering users from canceling their Amazon Prime subscriptions.
-Before the legal action, the cancellation process involved scrolling through multiple web pages filled with distracting information and vague button labels. In response to the dialogue initiated in 2021, Amazon introduced initial improvements to its Prime web interface, such as clearer cancel button labeling and shorter explanatory text. However, the Consumer Council contends that these efforts fall short of ensuring an easy and straightforward cancellation process. As a result, the Consumer Council has reported Amazon to the Norwegian Consumer Protection Authority.
The Consumer Council's findings reveal several tactics used by Amazon to complicate the cancellation process, including making users confirm their cancellation repeatedly, employing design and text elements to confuse and obscure choices, and employing a strategy of intimidation and enticement by highlighting the benefits users will lose and questioning their decisions. These practices violate the users' expectations and, according to the Consumer Council, are in violation of both Norwegian and European legislation. Specifically, Amazon's actions contravene Section 6, 8, and 9 of the Marketing Control Act.
Outcome
The European Commission, along with consumer authorities from EU member states, including ACM, has reached an agreement with Amazon, ensuring that Amazon Prime users can easily cancel their subscriptions with just two clicks.
Parties
European Consumer Organisation (BEUC), Norwegian Consumer Council, Transatlantic Consumer Dialogue and Amazon Prime
Case number
Media/2021/01
Decision
Related deceptive patterns
Hard to cancel (aka "Roach Motel") is a deceptive pattern where it is easy to sign up for a service or subscription, but very difficult to cancel it. This typically involves hiding the cancellation option, requiring users to call customer services to cancel, and making the cancellation process overly complex and time-consuming. This can cause users to give up trying to cancel, and continue paying for the service for a longer period.
Related laws
Unfair commercial practices, including misleading and aggressive tactics, are prohibited, targeting vulnerable groups and emphasizing disclosure of material information for informed consumer decisions.