Monopoly Busters Caucus Chairs Statement on FTC’s Amazon Subscription Traps Settlement

WASHINGTON, D.C. - The Monopoly Busters Caucus Chairs, U.S. Representatives Pramila Jayapal (WA-07), Chris Deluzio (PA-17), Pat Ryan (NY-18), and Angie Craig (MN-02), issued a statement on the Federal Trade Commission's (FTC) $2.5 billion settlement with Amazon over illegally manipulating and trapping people into Prime subscriptions, which includes a $1 billion civil penalty and $1.5 billion in consumer refunds.

"The FTC's $1 billion fine falls far short of the systemic change needed to stop monopolies from scamming American families. Amazon's illegal conduct is how it raked in billions in subscription fees and built the customer base that underpins its entire online empire. Locking people into subscriptions has helped turn Prime into a fence around Amazon's monopoly, now worth trillions, that has boxed out smaller competitors.

"The $1.5 billion in refunds shows the scale of Amazon's success in trapping people in Prime. Internal documents reveal that Amazon executives knew exactly what they were doing. Their plan was clear: to trap working families in a doom loop where they could not quit paying for Prime.

"This settlement does nothing to prevent the next giant corporation from coming up with a different, equally deceptive subscription trap tomorrow. We need a rule, not a reaction, to stop corporate monopolies from ripping off American consumers and locking out honest small businesses. The FTC must permanently ban this digital deception for good by making 'click-to-cancel' the law of the land. If it takes one click to join, it should take one click to quit."

Issues: Science, Technology, & Antitrust