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FTC study uncovers “deceptive patterns” used in subscription apps and websites

The United States Federal Trade Commission (FTC), in collaboration with two international consumer protection networks, presented the results of a study on the use of "dark patterns" on 642 websites and applications that provide subscription services. These manipulative design techniques can compromise users' privacy or induce them to purchase products, engage services, or take actions they would not otherwise take. According to the analysis, the vast majority of these sites (almost 76%) were observed to use at least one deceptive pattern, while nearly 67% used more than one.

Dark patterns are design strategies that seek to subtly influence user actions or compromise their privacy. These techniques are commonly employed on digital subscription platforms and have come under scrutiny by the Federal Trade Commission in the past. An example of this is the FTC's lawsuit against the leading dating app company, Match, for deceptive practices that included hindering the cancellation of subscriptions through the use of dark patterns.

The release of the new report suggests that the Federal Trade Commission (FTC) may be considering stepping up its oversight of consumer fraud. This report is presented in a context in which the United States Department of Justice has filed a lawsuit against Apple for allegedly exercising a monopoly over the App Store. This market represents a significant amount of revenue derived from the sale of digital goods and services, including those purchased through subscription applications.

The newly released report examines in detail various forms of deceptive patterns, such as stealth, stonewalling, nagging, forced action, social proof, among others.

In the study, sneaking was identified as one of these most common dark patterns. This term refers to the impossibility of deactivating the automatic renewal of subscriptions during the registration and purchase process. It was observed that 81% of the sites and applications analyzed used this technique to ensure automatic renewal of subscriptions. Additionally, in 70% of cases, subscription providers did not provide information on how to cancel a subscription, and 67% did not provide a deadline by which the consumer could cancel and avoid a new charge.

Clogging is a common feature present in subscription apps, making it difficult to perform certain actions, such as canceling a subscription or preventing registration for a free trial. For example, the option to close the offer may be presented in gray and inconspicuous.

Annoyance in the business field is defined as the action of repeatedly insisting the consumer to carry out certain actions that the company wants them to carry out. An example of this practice, although not limited to a subscription app, is seen in TikTok's strategy, which often persistently asks users to add their contacts to the platform, even after the user has previously opted out. this option.

Forced action involves requiring the consumer to take a certain action to access a specific functionality, such as providing their payment information to participate in a free trial, a requirement requested by 66,4% of the websites and applications analyzed in the study.

Social proof is a strategy that uses collective influence to motivate the consumer to make a purchase, displaying quantitative data related to a certain activity. This technique is widely used in the e-commerce space, where companies show users how many others are interested in a product or have added it to their cart. For subscription apps, social proof can be used to encourage users to subscribe by showing them how many other people have opted for the same action.

According to the study, 21,5% of the websites and apps analyzed used notifications and other social proof strategies in order to motivate consumers to sign up for a subscription.

Sometimes websites try to generate a feeling of urgency in order to stimulate purchasing by consumers. This strategy is common on platforms such as Amazon and other e-commerce portals, which notify users about stock shortages to motivate an immediate purchase. However, it is less common to use this tactic to promote subscription sales.

Interface interference is a broad category that encompasses website or app design strategies intended to influence consumer decisions for the benefit of a business. These strategies include pre-selecting items, such as longer or more expensive subscriptions (applied by 22,5% of study participants), and using a “false hierarchy” to visually highlight more business-friendly options, strategy used by 38,3% of the companies analyzed.

Interface interference can include what the study calls "confirmshaming," which is using language in an emotive way to influence consumer decision-making, such as the phrase "I don't want to miss anything, subscribe."

The study conducted from January 29 to February 2 was part of the activities of the International Consumer Protection and Enforcement Network (ICPEN). Herein annual review 642 websites and applications that offer subscription services were analyzed. It is highlighted that the FTC will assume the presidency of the ICPEN for the period 2024-2025. Officials from 27 authorities belonging to 26 countries participated in this investigation, applying descriptions of dark patterns established by the Organization for Economic Cooperation and Development. It is important to mention that the objective of this work was not to determine the legality of the practices in the countries evaluated, since this decision corresponds to the government authorities of each nation.

The Federal Trade Commission (FTC) was part of the evaluation of the Consumer Protection Cooperation Initiative (ICPEN), which was coordinated with the Global Privacy Enforcement Network, a network made up of more than 80 authorities in charge of enforce privacy protection.

The Federal Trade Commission (FTC) has previously investigated the use of deceptive techniques. In 2022, it issued a Report that addresses various deceptive methods, which are not restricted only to digital subscription platforms. This report examined deceptive strategies in various sectors, such as e-commerce and applications aimed at minors, including practices such as those used in cookie consent messages, among others.

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