WHAT’S THE ISSUE?
Hagens Berman has been retained by Arizona Attorney General Kris Mayes to file a consumer-protection lawsuit on behalf of the state of Arizona. The lawsuit alleges that Amazon has subjected consumers in Arizona to deceptive and unfair practices. The lawsuit accuses Amazon of enacting an intentionally difficult process to unsubscribe from its Prime service on Amazon.com, for which users pay a $139 annual fee. The Arizona AG’s lawsuit alleges that Amazon designed this process to be “willfully deceptive,” relying on “dark patterns” to keep Prime members locked into their memberships, according to leaked internal documents.
HOW HAVE ARIZONA CONSUMERS BEEN AFFECTED?
Amazon has operated in Arizona since at least 2010, according to the lawsuit. From its 17 fulfillment and sortation centers and 13 delivery stations in Arizona, Amazon dispatches Amazon orders to millions of Arizona customers who spend on average $91.55 per month on Amazon.com ($1,098 per year).
“Arizona residents and Prime subscribers have been harmed by Amazon’s deception,” the lawsuit states. “Through willfully deceptive practices, Amazon tricked Prime members into paying more subscription fees than they intended.”
WHAT IS AT STAKE?
The lawsuit brought by the Arizona Attorney General and Hagens Berman brings claims under the Arizona Consumer Fraud Act. This law prohibits the “act, use or employment by any person of any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, misrepresentation, or concealment, suppression or omission of any material fact with intent that others rely on such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise whether or not any person has in fact been misled, deceived or damaged thereby” as “unlawful practices.”
The lawsuit seeks relief through disgorgement, civil penalties, fees and injunctive relief to prevent Amazon from continuing its allegedly deceptive behavior.
AMAZON PRIME DARK PATTERNS EXPLAINED
The lawsuit accuses Amazon of exploitative behaviors that impact the way its customers cancel Amazon Prime subscriptions. Attorneys say Amazon’s online environment is intentionally designed to confuse and impede the consumer’s ability to consent to purchases or subscription services. “Because Prime members are so valuable to Amazon, it is loath to let them go. And it shows,” the lawsuit states.
Examples of Amazon’s alleged dark patterns include:
- Requiring Prime members to navigate through six layers of menus and webpages to locate the option to unsubscribe from their membership.
- Employing warnings of the consequences of unsubscribing from Amazon Prime while offering multiple prominent opportunities to stay enrolled.
- Confusing customers by changing terms on key buttons: “End Membership” changes to “Cancel My Benefits,” and then to “Continue to Cancel,” and finally to “End Now,” whereas, the “Keep My Benefits” button remains constant.
TOP ARIZONA LAW FIRM
Hagens Berman is home to some of the most well-respected and successful lawyers representing plaintiffs, and the firm has achieved total settlements valued at more than $320 billion since its founding in 1993. The firm has taken on major institutions for fraudulent billing and predatory behavior, including other Big Tech companies, the mortgage market, utility companies, product manufacturers and other negligent parties. The firm has filed a class-action lawsuit against Amazon regarding its Prime subscription Dark Patterns on behalf of consumers nationwide.
