New York – Retailers in the U.S. are facing increased scrutiny over their subscription programs, with Walmart, Best Buy, Savage X Fenty, and Adore Me joining Amazon in being accused of deceptive tactics to sell memberships. These subscriptions offer perks such as free delivery, tech support, and merchandise discounts in exchange for monthly fees. A survey by Euromonitor Inc found that 30% of Americans were enrolled in a subscription service in 2022, up from 20% in 2017. The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that it duped consumers into purchasing Prime subscriptions, which are a key driver of the company’s sales volume. The FTC claims that Amazon deliberately complicated the cancellation process for Prime members, although the company stated that it has made changes to comply with consumer protection rules. Experts believe that the outcome of this lawsuit may set the standards for the entire sector, as retailers are now being targeted for practices such as auto-renewal terms and multi-step cancellation policies that have become common in the online subscription industry. Retailers like Savage X Fenty and Adore Me have also faced legal action over their membership programs, with lawsuits being filed against them for failing to disclose and fully explain their terms and conditions to customers. In the case of Savage X Fenty, a settlement was reached with California’s state government, resulting in website changes and refunds for consumers. Walmart’s Walmart+ subscription, which offers free grocery delivery, has also been the subject of a lawsuit alleging deceptive practices. Similarly, Best Buy has faced a class-action lawsuit from a customer who claims to have been automatically enrolled in two subscription programs without consent. The outcome of these cases could impact the way retailers structure and disclose their subscription programs in the future.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
