US retailers’ members-only programs under scrutiny with Amazon lawsuit

From big-box chains Walmart and Best Buy to specialty retailers like Savage X Fenty and Adore Me, retailers’ subscription programs are facing growing scrutiny.Many collect monthly fees from shoppers in exchange for free delivery, unlimited tech support or discounts on merchandise. Thirty percent of Americans were enrolled in a subscription service in 2022, according to a survey of 37,720 people by Euromonitor Inc, up from 20% of respondents in 2017.

Amazon is under fire from the U.S. Federal Trade Commission, which filed a lawsuit against it in Seattle. The FTC accused the e-commerce giant of duping “millions of consumers” into purchasing subscriptions for Prime services. Prime members in the United States pay $139 per year for free delivery, and drive much of Amazon’s sales volum…