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Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

ftc.gov

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Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#121

I cancelled Prime last year after getting fed up with Amazon in several ways. Bringing ads to Prime Video was the straw that broke the camel’s back. I do still end up ordering from time to time, and the checkout process for non-Prime members is horrific. Multiple Prime sign-up offers that I always need to carefully read so I don’t click the wrong thing, illogical default shipping options, with more tricks to try and…

[deleted]

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#122
They got me a little a couple of months ago. I had a free prime trial, then clicked cancel which was easy enough but it didn't cancel because I didn't notice after cancel there was an 'are you sure you really want to cancel' which I missed. Such is the way of the game I guess.

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#123
$2.5B.

I genuinely can't fathom these numbers. As in: it could be $25B or $250M and it would mean the same to me.

Does this materially impact Amazon?

I'm (really) not a fan of Amazon, but to me that's an existential amount of money. I don't think I've ever worked anywhere where that kind of money wouldn't be a "ok, I guess we're closing down, turn off the lights when you leave" situation, and I've worked at some large companies.

I'm not usually exposed to financials I guess but my burn rate for my last (very small) company was about $4-5M/y roughly. This amount of money would keep us all gainfully employed for about 500 years.

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#124

I cancelled Prime last year after getting fed up with Amazon in several ways. Bringing ads to Prime Video was the straw that broke the camel’s back. I do still end up ordering from time to time, and the checkout process for non-Prime members is horrific. Multiple Prime sign-up offers that I always need to carefully read so I don’t click the wrong thing, illogical default shipping options, with more tricks to try and…

> I don’t know why any non-Prime customer would want to sign up

At least for me, it's easy -- the Prime credit card, which has no extra fee beyond Prime itself. I get 5-7% back, instead of the 1-2% with my other credit cards. It literally pays for itself and more over the course of a year. The faster shipping is just a bonus.

And I'm not buying junk I don't need either. It's literally just regular toiletries, my normal grocery shopping at Whole Foods (also 5% off), and then just replacing all the things in my home when they wear out or break -- kitchen things, bedding, electronics, and so forth. All things that are usually cheaper on Amazon than anywhere else anyways. (I still use Target.com for things that are cheaper there.)

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#125

I cancelled Prime last year after getting fed up with Amazon in several ways. Bringing ads to Prime Video was the straw that broke the camel’s back. I do still end up ordering from time to time, and the checkout process for non-Prime members is horrific. Multiple Prime sign-up offers that I always need to carefully read so I don’t click the wrong thing, illogical default shipping options, with more tricks to try and…

> I think my goal for 2026 will be not to order anything from Amazon

This has been my position for upwards of 5 years. Between the quality / UX / social issues - well frankly I'd rather spend money elsewhere (although not at all is likely)

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#126
post #34

Generally a fan of Prime. I’ll admit the shipping is pretty addictive. The rest of Prime is pretty meh. It’s a good deal on shipping and then a bunch of second-rate other stuff tacked on. On both .com and AWS, Amazon is reaching a stage of maturity where they’re running out of new customers. While still a fan of both, they’re both getting annoying as innovation slows and they get more annoying with a focus on doing t…

I kept Prime when they rolled the video streaming service into it. I had already been toying with the idea of canceling to break the addictive habit of using their fast shipping. Now that they've gone ads inserted into nearly everything including "included with prime" content, I'm just over it. Laziness and knowing my annual renewal is months away still keep me from experiencing the cancel hell that is in my future

It's really not a cancel hell like say Comcraps or a gym membership. It's several pages of trickily-worded and misleadingly-styled buttons meant to make you mess up and not click the ones you need to click. From a real computer (ie no "mobile" myopia) you'll be done with it in under 5 minutes. I think you could even do it right now and still keep your benefits until your actual expiration, but I'm not exactly sure as I only ever do 1 month free trials or $2 "1 week" trials if I need something quick in the middle of a project.

(This is not to say that they totally don't deserve fines for violating users' trust with user-adversarial design in the first place, just to point out that these dark patterns are mostly mitigable annoyances that they make up for on volume)

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#127
post #21
post #16

Earlier quoted context omitted.

Anything that happens during this presidency (even if started under biden) gets a trump by-line...

And as you're implying, this action began under the "Biden-Harris FTC": https://www.ftc.gov/news-events/news/press-releases/2023/06/...

You might want to clarify that the document you're linking to does NOT have the words "Biden-Harris FTC" in it, but simply that the action was taken by that Administration's FTC. In fact, the article doesn't mention Biden or Harris in any capacity.

The salient point is that "Trump-Vance" is being stamped on everything in an effort to build the Admin's brand.

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#128
Amazon's 2024 net income (profit) was $59B on $638B revenue.

The median US household income is $80k and has a savings rate (profit) of 3.6%, or $2880.

This $2.5B fine is equivalent to the average US household being fined $115 or, basically, a traffic ticket.

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#129
post #113

Earlier quoted context omitted.

A much simple explanation is that each order is assigned a priority f(elapsed time, is prime) prime orders starting much higher so the processing of your order gets delayed behind all the incoming prime orders until its priority catches up due to longer elapsed time

They obviously have some metric that if you buy something, you’re likely to buy something again within two days so by holding the first shipment until you do the second purchase, they combine shipping and save costs.

When ordering without Prime it says you have 24 hour (I think) to add other items without incurring additional shipping charges. I don't remember Prime doing this, and there is little benefit to the customer to care, because it's all "free" anyway.

I ordered something on Sunday, I had until Monday to add additional items. I was charged on Wednesday evening, it shipped Thursday (today), and should show up tomorrow.

I can buy the priority method. Sit it on until a lull in demand, or 3-4 days pass, whichever comes first. That's how it feels.

Even though thad had this order for 4 days so far, they are effectively giving me 1-2 day shipping once it finally ships.

Re: Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

#130

I cancelled Prime last year after getting fed up with Amazon in several ways. Bringing ads to Prime Video was the straw that broke the camel’s back. I do still end up ordering from time to time, and the checkout process for non-Prime members is horrific. Multiple Prime sign-up offers that I always need to carefully read so I don’t click the wrong thing, illogical default shipping options, with more tricks to try and…

> I don’t know why any non-Prime customer would want to sign up At least for me, it's easy -- the Prime credit card, which has no extra fee beyond Prime itself. I get 5-7% back, instead of the 1-2% with my other credit cards. It literally pays for itself and more over the course of a year. The faster shipping is just a bonus. And I'm not buying junk I don't need either. It's literally just regular toiletries, my norm…

Same here. I was shocked when I first read the offer and am still shocked now that I get such a large cash back rate. It easily pays for itself.
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