FTC v. Amazon Court Filing, retrieved on June 1, 2023, is part of . You can jump to any part in this filing . This part is 5 of 30. HackerNoon’s Legal PDF Series here Typical Prime Enrollment Experiences 20. Consumers can subscribe to Prime through multiple pathways including through Amazon devices (like the Amazon Fire TV streaming device), while using Prime Video, or through Prime’s unique webpage (“Prime Central”). However, (Redacted) subscriptions occur through the Amazon shopping checkout process. 21. The basic consumer checkout enrollment experience proceeds as follows on both desktop and mobile devices. Consumers who are not Prime members visit Amazon’s website— www.Amazon.com—to shop. They place items in their cart, and then provide (or confirm) their billing and address information. They then select a large orange “Continue” button, which typically appears in the lower right corner of the page, and move through additional pages to proceed with their purchase. Finally, consumers either complete their order by purchasing the items in their cart or abandon their cart. 22. Amazon presents all consumers who are not Prime subscribers with at least one opportunity (also known as an “upsell”)—and often several opportunities—to join Prime before those consumers place their order on the final checkout page. Amazon has two primary types of upsells that enroll consumers: interstitials and non-interstitials. An interstitial is a page that interrupts consumers’ online shopping experience by appearing before the page that consumers seek to access in the first place. In contrast, non-interstitial upsells are elements imbedded within checkout pages, including shipping-option selection and payment pages. 23. On desktop devices, Amazon has several Prime upsells: an interstitial upsell called the (Redacted) and three non-interstitial upsells called the (Redacted) On mobile devices, Prime upsells mirror those on desktop, and include the (Redacted). 24. **__(Redacted) on Desktop. __**Amazon calls the Prime interstitial upsell the (Redacted). . Although the (Redacted) has changed over time, it generally inte1n 1pts consumers' online shopping experience by presenting them with a prominent button to enroll in Prime and a comparatively inconspicuous link to decline. Consumers cannot avoid the (Redacted). The upsell forces consumers to select either the button or the link to proceed to checkout. See Attachments A- D. REDACTED 25. The (redacted) orange button, which enrolls a consumer in Prime if clicked, is located toward the bottom right of the screen and often includes language referencing "free shipping" or a "free trial." (Redacted). (Redacted). (Redacted). (Redacted). (Redacted). (redacted) (redacted) See Attachment A See Attachment B See Attachment C and D see Attachment A and B, see Attachment C and D, 26. If a consumer clicks the orange button, Amazon enrolls the consumer in a Prime free trial, (redacted) 27. The (redacted) ’s blue link, which declines the Prime membership if clicked, (redacted) includes language that the consumer will not receive - “free shipping.” (redacted) , (redacted) . (Redacted) . see Attachment A see Attachment B see Attachment C See Attachment D. (redacted) . see Attachment A-D 29. The (redacted) does not adequately disclose the price of the monthly auto-renewal feature of Prime. (Redacted). . see Attachment A-D (redacted) a. (redacted) . See Attachment E b. (redacted) . (redacted) . see Attachment E See Attachment E (REDACTED) c. (redacted) . See Attachment E d. (redacted) . See Attachment E e. (redacted) . See Attachment E f. (redacted) . See Attachment E (redacted) a. (redacted) . See Attachment F b. (redacted) . See Attachment F c. (redacted) . See Attachment F d. (redacted) . See Attachment F REDACTED 32. Separate from the (redacted), various Prime upsells appear as elements within the f appears in various versions to consumers depending on factors (i.e., whether a consumer has previously declined a Prime upsell). (Redacted) (Redacted) on Desktop. (Redacted) (Redacted) See Attachment G, at 3–4. See Attachment G, at 4. REDACTED (Redacted) , at 5. See Attachment G (Redacted) , at 6. (Redacted) See Attachment G (Redacted) , at 7. See Attachment G (Redacted) , at 7. (Redacted) See Attachment G (Redacted) (Redacted) (Redacted) on Desktop. (Redacted) , at 3–4. See Attachment H (Redacted) (Redacted) , at 5. (Redacted) See Attachment H (Redacted) at 5. See Attachment H, (Redacted) at 5. See Attachment H, REDACTED (Redacted) at 5. See Attachment H, (Redacted) at 6. See Attachment H, (Redacted) (Redacted) . (Redacted) (Redacted) on Desktop. See Attachments I–K (Redacted) (Redacted) Compare Attachment I with Attachments J and K. (Redacted) at 3. See Attachment I, REDACTED (Redacted) at 4. See Attachment K, REDACTED (Redacted) at 4. (Redacted) See Attachment I, (Redacted) at 4. See Attachment I, REDACTED (Redacted) at 4. See Attachment I, (Redacted) at 4. (Redacted) See Attachment I, (Redacted) at 5. (Redacted) See Attachment I, REDACTED (Redacted) at 4. (Redacted) See Attachment I, REDACTED (Redacted) at 7. (Redacted) at 7. See Attachment J, See Attachment J, REDACTED (Redacted) at 5. See Attachment K, (Redacted) at 8. (Redacted) at 8. See Attachment J, See Attachment J, REDACTED (Redacted), Prime upsells on the mobile checkout flow have mirrored those on desktop checkout, and have included the (Redacted). 64. Navigating Prime upsells on mobile devices is more difficult than on a desktop. Amazon often places material terms such as price and auto-renewal terms at the very bottom of the mobile page—past the point viewable on the screen unless the consumer scrolls down— where consumers are least likely to see this information. On mobile devices, consumers are also more likely to select a prominent option without scrutinizing fine print. 65. (Redacted) Mobile (Past). (Redacted) Attachment L, at 4. See REDACTED (Redacted) Attachment L, at 5-6. (Redacted) See (Redacted) Attachment L, at 7. (Redacted) See REDACTED (Redacted) , at 7. See Attachment L (Redacted) , at 8. See Attachment L 71. The (Redacted) on mobile devices contained similar problematic elements as the (Redacted) on desktop. 72. The (Redacted) on mobile (Redacted) required consumers to either accept or decline a Prime subscription before allowing them to continue shopping. (Redacted) See Attachment M. REDACTED 73. The (Redacted) on mobile also contained similar problematic elements as (Redacted) on desktop. (Redacted) , at 3-4. (Redacted) , at 5-6. See Attachment N See Attachment N (Redacted) , at 7. (Redacted) See Attachment N (Redacted) , at 8. (Redacted) See Attachment N 77. . In 2022, Amazon (Redacted). Mobile (Current) 78. The current mobile upsells contain many of the same problematic elements as the (Redacted)—including misleading language and manipulative designs—which lead consumers to enroll in Prime without their consent. 79. Consumers using mobile devices to navigate to Amazon.com can select a product by clicking a large yellow button (“Add to Cart”), and continue shopping, or a large orange button (“Buy Now”) to proceed directly to the checkout. , at 1. Consumers who continue shopping add additional products to their cart by clicking the large yellow “Add to Cart” button, until they finish and choose another large yellow button (“Proceed to checkout”), which takes the consumer to the next step. , at 2. See Attachment O See Attachment O 80. At this point, the consumer signs in (if the consumer has not already) and clicks a large yellow “Continue” button to proceed to a mobile (Redacted). Consumers who have already signed in proceed directly to the mobile (Redacted). 81. Consumers without an ac - count must create one before reaching the mobile (Redacted). Creating an account involves four steps: entering an email address, creating a password, and adding an address and a payment method. , at 3-4. Completing these steps takes the consumer to the mobile (Redacted). See Attachment O When a consumer reaches the mobile (Redacted), Amazon divides the page, with a footer (sometimes known as a “sticky footer”) that occupies the screen’s bottom half, rendering only a portion of the top half visible unless the consumer scrolls down. , at 5. See Attachment O 83. At the top of the mobile (Redacted), Amazon informs the consumer that “we’re giving you 30 days of Prime for FREE.” , at 5. Smaller text below reads: “After your FREE trial, Prime is just $14.99/month,” but does not reference Prime’s auto-renewal feature. Consumers can view this section without scrolling. See Attachment O 84. The sticky footer on the lower half of the screen contains double-stacked buttons: the top yellow “Get FREE Two-Day Delivery with Prime” button and an image appearing to be a gray lower button labelled “Save $5.99 instantly on this order.” See Attachment O, at 5. Amazon enrolls consumers who click the yellow button in Prime. As such, a consumer can enroll in Prime without viewing the portion of the page that the sticky footer hides. 85. If a consumer scrolls down, Amazon shows consumers a table comparing the “Perks of Prime” with “Without Prime.” See Attachment O, at 5. For instance, perks of Prime include “Fast, FREE delivery on Prime eligible items,” “[a]ll the music + top podcasts ad-free on Amazon Music,” and “Prime Video – Enjoy award-winning Amazon Originals, movies and TV shows” whereas without Prime, a consumer has “[m]inimum order requirements,” “[m]usic listening with ads,” and Prime Video “[n]ot included.” 86. The following text is visible at the bottom of the sticky footer, in the smallest type on the screen: “By signing up, you acknowledge that you have read and agree to the Amazon Prime Terms and . . . See all.” See Attachment O, at 5. If the consumer continues scrolling, additional information about Prime’s “Terms and Conditions” and “Shipping Benefits” becomes visible in small text beneath the “No thanks” link. A sentence in the middle of this additional text reads: “Your Amazon Prime membership continues until cancelled. If you do not wish to continue for $14.99/month plus any applicable taxes, you may cancel anytime by visiting Your Account and adjusting your membership settings.” 87. If a consumer clicks the downward arrow on the top right of the sticky footer, Amazon also reveals the additional text beneath the “No thanks” link. The arrow is adjacent to the yellow “Get Free Two-Day Delivery with Prime” button that will enroll the consumer in Prime. If a consumer clicks the button while attempting to click the adjacent sticky footer arrow, Amazon enrolls the consumer in Prime. 88. Consumers cannot view the full text beneath the “No thanks” link without scrolling or clicking the sticky footer arrow. However, consumers can enroll in Prime by selecting the large yellow “Get FREE Two-Day Delivery with Prime” button without scrolling. See Attachment O, at 5. 89. Consumers can proceed with their purchase if they select either the yellow button or the blue “No thanks” link. See Attachment O, at 5. 90. If the consumer selects the yellow “Get FREE Two-Day Delivery with Prime” button, Amazon brings the consumer to a final page with a yellow “Place your order” button and “Congratulations, your Prime free trial has started! We’ll email you about all Prime benefits” underneath. Therefore, Amazon enrolls the consumer in Prime before the consumer has even placed the order. The final page of the flow also contains an “Order Total” that does not include Prime’s price. See Attachment O, at 6. 91. On this final page, the consumer can change or confirm shipping and billing information, remove products from the cart, and make other changes such as adding gift receipts or providing delivery instructions. See Attachment O, at 6. The consumer can also select a shipping method. 92. The yellow button labelled “Place your Order” allows consumers to make their purchase. See Attachment O, at 6. Prime’s price and auto-renewal feature do not appear on the page, the consumer cannot remove Prime, and the consumer cannot back up and choose “No thanks” to Prime on the prior page. 93. In each pathway (Redacted, and mobile), Amazon fails to provide clear and conspicuous disclosures regarding the Prime subscription program’s material terms: its price, and the fact that it renews automatically unless the consumer affirmatively cancels. Furthermore, in each pathway (Redacted), and mobile), Amazon does not provide any disclosures at all before Amazon collects billing information from consumers. 94. . Prime Video is a distinct product from Prime. Specifically, Prime Video is a subscription-based video streaming service. Although it is possible to sign up for Prime Video alone, it is difficult to do so. Prime Video 95. Amazon’s webpage tricked consumers into signing up for Prime instead of Prime Video, which would be a lower-cost option. 96. In particular, Amazon initially offers Prime Video as part of the full, more expensive Prime package to consumers who reach the Prime Video homepage (or “storefront”) to enroll in Prime Video. See Attachment P, at 1 REDACTED 97. Capitalizing on some consumers’ inability to appreciate the difference between “Prime” and “Prime Video,” the Prime Video enrollment process fails to clarify Amazon will enroll them in Prime rather than the less expensive Prime Video, on both desktop and mobile platforms. This causes some consumers to enroll in Prime, rather than Prime Video, unknowingly. 98. Consumers can reach the Prime Video storefront through various ways, including by searching “Prime Video” in an online search engine or the Amazon search bar. 99. The initial Prime Video storefront displays the Prime Video logo at the top and an orange button labelled “Watch with Prime. Start your 30-day free trial.” See Attachments P and V. 100. Amazon brings consumers who press the orange button to a second page and prompts them to sign in (if they have an Amazon account) to confirm billing information, or to create an account and submit billing information. This page also contains small print links to the Amazon Prime Conditions of Use and Privacy Notice at the bottom of the page. See Attachment V, at 2-5. 101. Amazon does not, to this point, present the consumer with any marketing regarding Prime, as opposed to Prime Video. 102. After sign in or account creation, Amazon brings consumers to a page containing, from top to bottom: (a) the Prime logo with “Watch now, cancel anytime. Start your 30-day free trial”; (b) the email associated with the account; (c) a table with “Confirm your details” at the top followed by the plan type, which is “Prime. Enjoy unlimited streaming of thousands of movies and TV shows plus FREE Two-Day Delivery on millions of items. $14.99/month after trial” (to get Prime Video rather than Prime, the consumer must click a gray “change” box to the right); (d) the consumer’s email, payment method, and billing address; (e) at the bottom, “By signing up, you acknowledge that you have read and agree to the Amazon Prime Terms and Conditions and authorize us to charge your preferred card or another available credit card on file after your 30-day free trial. Your Prime membership continues until cancelled. If you don’t want to continue for $14.99/month plus any applicable taxes, you may cancel anytime by visiting Your Account and adjusting your membership settings;” and (f) an orange button in the bottom right corner, labelled “Start your free trial.” The button sits immediately above a gray area with text reading “Change or cancel plan anytime. Pay later.” See Attachment P, at 2 and Attachment V, at 6. REDACTED 103. To enroll in Prime Video (instead of Prime), the consumer must click on the “Change” button for the Plan information toward the top of the page, change the plan on the subsequent page, and then navigate back to confirm the Prime Video selection. See Attachment P, at 2 and Attachment V, at 6. (Redacted) Attachment P, at 3. (Redacted) See REDACTED 105. After receiving the June 30, 2022 CID, Amazon changed the Prime Video enrollment flow for Prime. Now, when consumers click “Start your free trial” Amazon shows at least some consumers a page titled “Welcome to Prime, [name]” that describes certain Prime membership services. On this page, there is no option to cancel the Prime membership. Toward the bottom are two buttons: on the left “Discover Prime benefits” (gray button) takes consumers to an overview of Prime-related services, and on the right “OK” (blue button) continues to the Prime Video storefront. See Attachment V, at 7-8. 106. Prime Video (Mobile). Consumers may also enroll in Prime through Prime Video on a mobile device. 107. Like Prime Video on desktop, Prime Video on mobile tricked consumers into signing up for Prime instead of Prime Video, which would be a lower-cost option. 108. Like desktop Prime Video, the Prime Video mobile storefront displays the Prime Video logo at the top and, toward the bottom of the page, an orange button labelled “Watch with Prime. Start your 30-day free trial.” Above the orange button, in blue text, reads “Prime” and then, in white text, “Watch for $0.00 with Prime.” See Attachment U, at 1. 109. Amazon brings consumers who press the orange button to a “Welcome” page to sign in (if they have an Amazon account) to confirm billing information, or to create an account and submit billing information. The page also contains links to “Amazon’s Conditions of Use and Privacy Notice.” See Attachment U, at 2. 110. After sign in or account creation, Amazon then brings consumers to a page that asks consumers to “Confirm your details,” and includes the following information from top to bottom: (a) Next to “Plan” reads: “Prime. Enjoy unlimited streaming of thousands of movies and TV shows plus FREE Two-Day Delivery on millions of items. ($14.99/month after trial).” Next to this text is an arrow similar to a greater-than sign (“>”). (b) The page also lists consumer’s email, payment method, and billing address information. (c) There is then a link to Amazon Prime terms and conditions, as well as Prime’s price and auto-renewal feature. (d) Toward the bottom is an orange button “Start your free trial” with black text beneath: “Change or cancel plan anytime. Pay later.” See Attachment U, at 5. 111. To enroll in Prime Video (instead of Prime), the consumer must click on the “Plan” information toward the top of the page, change the plan on the subsequent page, and then navigate back to confirm the Prime Video selection. 112. If the consumer simply clicks the orange “Start your free trial” button, Amazon enrolls the consumer in Prime—not Prime Video—but then immediately takes the consumer to the Prime Video storefront page. See Attachment U, at 6. Continue Reading . Here About HackerNoon Legal PDF Series: We bring you the most important technical and insightful public domain court case filings. This court case 2:23-cv-00932 retrieved on September 28, 2023, from is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction. ftc.gov

How Amazon Upsells Customers to Become Prime Members

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