Ninth Circuit Ruling on Children’s Privacy, Amazon’s Deceptive Discounts, and FTC E-Commerce Settlements

Introduction:

Welcome to Fair Monday! We know Mondays can be a bit rough, so we created Fair Monday to bring you weekly insights and resources on dark patterns and digital fairness. Each Monday, we share updates on the latest developments, helping you stay informed and empowered to create a fairer, more transparent digital space.

This Week's Highlights:

1. Ninth Circuit Ruling on California’s Age-Appropriate Design Code
   On August 16, 2024, the Ninth Circuit Court ruled on NetChoice v. Bonta, striking down parts of California’s Age-Appropriate Design Code (AADC) on First Amendment grounds while upholding its ban on dark patterns. Key points include:
   ➡ The AADC’s focus on age estimation and default privacy settings aims to enhance children’s online safety.
   ➡ The court upheld the provision against dark patterns, emphasizing that it regulates conduct, not speech.
   ➡ This aligns with similar efforts in Colorado, Connecticut, Delaware, and Texas, reinforcing protections for vulnerable users.
   ‍
2. ‍Class Action Lawsuit Targets Amazon’s “Limited Time” Discounts
   On September 12, 2024, Amazon was hit with a class action lawsuit accusing it of deceptive advertising for its Fire TV sales. Allegations include:
   ➡ Using dark patterns to promote false “limited time” sales.
   ➡ Inflating or fabricating list prices and misleading terms like “-33%” or “limited time.”
   ➡ Violating a March 2021 injunction against false advertising.
   
   The lawsuit aims to represent all customers misled by these claims and seeks accountability for Amazon’s ongoing practices.‍
   ‍
3. FTC Secures $63 Million Settlement Against E-Commerce Operators
   On September 17, 2024, the FTC reached a $63 million settlement with multiple e-commerce firms, including Legion Media, KP Commerce, and Sloan Health Products. Key allegations include:
   ➡ Misleading consumers with “free” products and unauthorized recurring charges.
   ➡ Engaging in credit card laundering and using dark patterns to create urgency, such as fake low inventory alerts.
   ➡ Failing to disclose automatic enrollments for subscriptions.
   
   As part of the settlement:
   ➡ Legion Media and Sloan Health Products will each pay $30 million.
   ➡ KP Commerce will pay $3 million.
   ➡ All defendants are permanently banned from fraudulent practices.

Stay Connected:

• 🚀 Register for our Masterclass on Dark Patterns: Sign up here
• 💡 Subscribe to our newsletter for updates and insights: Subscribe here
• 📚 Explore all our news and resources on our website.
• 🎙️ Listen to our podcast for deeper discussions on digital fairness: Listen here.

Conclusion:

This week’s updates reflect significant advancements in combating dark patterns and protecting consumer rights. From safeguarding children’s online privacy to addressing deceptive sales tactics and securing accountability for e-commerce fraud, the global push for fairness and transparency continues to grow.

At Fairpatterns, we remain committed to supporting organizations in creating ethical, user-centered digital experiences. Let’s continue building a fairer digital future together. Have a fantastic week with Fair Monday!