The Federal Trade Commission’s (FTC) new antitrust lawsuit against Amazon is an amazing exercise in hubris and absurdity.
In a complaint filed Wednesday, the agency alleges that Amazon’s incredibly popular Prime program is a scam. Prime—a monthly or yearly subscription program that confers many benefits, including free shipping and tons of streaming content, to Amazon customers—is too easy to sign up for and too hard to cancel, the FTC alleges.
“Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime,” the agency said in a statement. “Amazon also knowingly complicated the cancellation process for Prime subscribers who sought to end their membership.”
But these claims of deception fall apart upon close examination (as noted by my colleague Eric Boehm yesterday). The FTC’s complaint revolves around mundane moves by Amazon, like conspicuously asking non-Prime customers if they want to sign up or requiring Prime subscribers to click through several screens to unsubscribe.
Patrick Hedger, executive director of the Taxpayers Protection Alliance, noted that it took him under a minute and required just six clicks to cancel his Prime account—fewer clicks than it takes to submit a public comment on the FTC website.
Like many major companies, Amazon has some flaws. But the argument that it’s broadly harmful to consumers—let alone so harmful that it requires the intervention of the federal government—is so far removed from reality that only government bureaucrats with an ax to grind could make it with straight faces. (In fact, Amazon routinely garners extremely high favorability ratings in consumer polls.)
Hellbound and Down 