Big-box chains from Amazon.com Inc (NASDAQ: AMZN), Walmart Inc (NYSE: WMT), and Best Buy Co Inc (NYSE: BBY) to specialty retailers like Savage X Fenty and Adore Me, retailers' subscription programs are facing growing scrutiny for employing unscrupulous tactics to sell subscription plans.
Many collect monthly fees from shoppers for free delivery, unlimited tech support, or discounts on merchandise, Reuters reports.
Thirty percent of Americans were enrolled in a subscription service in 2022, according to a survey of 37,720 people by Euromonitor, up from 20% of respondents in 2017.
The Federal Trade Commission booked Amazon for allegedly duping "millions of consumers" into purchasing subscriptions for Prime services.
Walmart faced charges for "deceptive subscription practices," including charging customers automatically after a free Walmart+ trial, creating obstacles in canceling subscriptions.
Best Buy also faced a complaint for automatically enrolling customers in two subscription programs while making an online purchase with no option to cancel either membership online.
Savage X Fenty faced complaints for luring shoppers to the site with VIP member discounts on lingerie and automatically enrolling them in its membership program without fully disclosing the terms.
Price Action: AMZN shares traded lower by 0.21% at $129.88 premarket on the last check Friday.