What Did Amazon Do This Week? - 02-07-2023 [+40 LINKS]
DARK PATTERNS + DARK DAYS AHEAD FOR AMAZON
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Two stories landed this week; the potential acquisition of Ocado (a UK grocery chain that focuses on grocery micro fulfilment centres and robotics) and the FTC’s forthcoming mega lawsuit that claims Amazon has been working for years to sign up customers for its Prime program against their will and making it difficult for them to cancel their memberships. Sources predict the latter will be an issue for Amazon when it lands in around two weeks.
SO WHAT?
Likely to be the most significant action the FTC has brought to date against Amazon, the move is no surprise to either Amazon or the administration. The move likely means the FTC has a bigger case (e-commerce monopolisation) up its sleeve for Amazon. The FTC needs to not look toothless, or like it’s picking on Amazon. The FTC is clearly unhappy with the tech companies’ obsession with ‘dark patterns’ which make it difficult for consumers to opt-out, cancel and otherwise dupe people into making bad decisions. FTC chairwoman Lina Khan needs a win right now, as many have seen her tenure at the FTC to be weak to date. Previously a law professor, Khan is no stranger to big fights although this will be her biggest action to date against any company, not just Amazon. The result? A settlement most likely. Alexa and Ring both cost Amazon $30.8 million after spying on customers. Unless this settlement goes into the billions, Amazon is unlikely to bat an eyelid, proving, once again, that it’s cheaper for big tech to pay the fines rather than toe the line.
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