FTC, led by Lina Khan, confronts Amazon over ‘dark patterns’
The FTC’s Crackdown on Deceptive Web Design Practices
The Federal Trade Commission (FTC) has recently intensified its efforts to combat deceptive web design practices that exploit human emotions, commonly known as “dark patterns.”
The FTC sued Amazon in late June, alleging that the company had employed “dark patterns” to make signing up for its premium service, Amazon Prime, significantly easier than canceling the service. This lawsuit was followed by the FTC settling a suit against Publishers Clearing House over its alleged use of dark patterns. These legal actions exemplify Chairwoman Lina Khan’s determination to curb the widespread use of deceptive designs for profit.
The Battle Against Deceptive Designs
“There’s no excuse for trying to deceive people into buying products or donating to a political campaign,” emphasized Mark Jamison, a senior fellow at the American Enterprise Institute. “I sympathize with efforts to reduce the use of dark patterns, but whether the lawsuit is justified is another matter.”
Dark patterns refer to deceptive practices incorporated into website or app designs that manipulate users into making unintended decisions. These practices include tricking users into purchasing unwanted products, making cancellations arduous, or divulging information to companies unintentionally. Dark patterns are considered illegal in the United States and the European Union under various laws, including the FTC Act.
The outcome of Amazon’s lawsuit remains uncertain. According to Jamison, much of the suit has been redacted, making it challenging to discern the specifics of each party’s arguments.
Chairwoman Khan has spearheaded the decision to sue Amazon and has adopted a more assertive approach to the agency’s enforcement overall. Khan has consistently targeted Amazon, authoring a well-known 2017 paper titled “Amazon’s Antitrust Paradox.” Despite Amazon’s request for Khan’s recusal from all cases involving the company, the request has largely been disregarded.
In 2021, the FTC began prioritizing dark pattern designs, particularly focusing on “roach hotel” designs. These designs make signing up for a service effortless but significantly complicate the cancellation process. Roach hotel design schemes are frequently employed to make canceling newspaper subscriptions or streaming services unnecessarily difficult.
In September 2022, the FTC released a report highlighting the increasing prevalence of dark patterns. The report revealed their use in disguising ads, complicating subscription cancellations, and deceiving users into sharing their personal data. In December, the agency sued Fortnite developer Epic Games for $245 million for utilizing dark patterns.
However, Amazon may not be the worst offender in the industry. According to an academic study, news websites like the New York Times require three times as many clicks to cancel a subscription compared to Amazon Prime.
Khan has faced criticism for disregarding the advice of others in the FTC’s lawsuits. Two congressional committee chairpeople accused her of ignoring the agency’s ethics guidelines when she halted Facebook’s parent company Meta’s attempt to acquire the virtual reality developer Within.
Both Amazon and the FTC declined to comment when approached by the Washington Examiner.
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