Feb 22, 2019

Amazon Prime's Ploy That Most Customers Fall Prey To

Whether or not you are an Amazon customer, you probably have heard of Amazon Prime membership. If you are a frugal person like me and waiting to hear when Amazon announces its 30-day free trial, then you should read this post. I will address some issues and concerns and how they might be related to you and your experiences. I will unmask Amazon Prime’s disguised price hikes in their ingenious marketing ploy that gives the company an opportunity to camouflage this ploy to overcharge customers. I will explain how I was overcharged.

You are probably aware that Amazon customers are only eligible for one free trial of Prime every 12 months. That happens generally in the beginning of the year, in January. So, knowing that I'd get a one-month free trial membership with Amazon Prime, I signed up last month. I ordered a couple of books and some other items. I set a reminder for myself to come back on time and to cancel my membership. Yesterday was the last day. I went online to cancel it but it said that I'm not a member because I signed for a free trial. That means you won't be charged when the free trial period ends. But unbeknownst me to that is not what happened. I was charged.

Today, out of curiosity I checked my bank account and I realized that Amazon had charged me $13.09 —that is for one month of Amazon Prime. It neither showed on my Amazon account nor did I receive an e-mail confirming the charge. So, technically a free trial period is a ploy to attract more customers and unbeknown to people, Amazon signs them up automatically to its Prime membership. This is exactly what happened to me. I did not subscribe to the Prime membership, it was only a 30-day free trial. But this is not an isolated ruse to deceive people, overcharging is another Amazon Prime hidden scheme.

So, let’s get down to the nitty-gritty of it. As I mentioned above, I did not sign up for a Prime membership, but I was charged $13.09. Let’s add up that number. For a twelve month membership, if I pay $13.09, which I was charged, it would add up to $157.08.

When I saw that number, I went online and did some research. I looked through Amazon Prime’s website and nowhere could I find that number. I became more suspicious of Amazon. And then I asked myself, what is that cost for? Why it is not mentioned on Amazon’s website? What is shady about it? I needed to find answers for all these questions.

So, before I turned to Amazon and contacted its customer service, I checked Amazon Prime’s page to find the current costs of membership. This is what I found on Amazon’s website. As of May 2018, Amazon has updated its Prime membership, which is as follows:

  • Starting May 11, 2018, new members will be charged $119/year for an annual Prime membership and $59/year for an annual Prime Student membership.
  • Starting June 16, 2018, existing Prime members with an annual membership will renew at a rate of $119/year. Prime Student members with an annual membership will renew at a rate of $59/year.
  • Monthly Prime members continue to pay $12.99 per month. Monthly Prime Student members continue to pay $6.49 per month
Now, where does it mentioned $13.09 a month or $157.08 for 12 months? Nowhere. How can we consolidate $157.08 with anyone of these numbers proclaimed on Amazon Prime’s membership page? We can’t. So, is there a hidden cost, error or some sort of scam going on? The answer is, I don’t know. I don’t think a scam would be Amazon’s intention, but there is definitely something fishy going on that Amazon hides from its customers. That is a secret and a dirty trick that Amazon has carefully planned to take advantage of customers.

So, after my initial research, I turned to Amazon’s customer service folks and they were oblivious about it. At least they couldn’t explain why customers are charged at such a high rate. Some were not able to answer my questions. They were slow, impatient, and sometimes appeared rude. Other people had similar experiences. Finally, I asked them to direct me to their manager and one of them did. I chatted with Vinay, who claimed to be from the leadership team. He was so impatient, impetuous and rude. He forced me to end the chat. He yelled at me: END CHAT! I talked to numerous people at Amazon’s customer service, but not all are that bad. Here is my correspondence with Vinay:

Here's a copy of the chat transcript you requested:
12:27 PM PST Akshay(Amazon)Hello, my name is Akshay. I'm here to help you today.
12:27 PM PST Nasim FekratHi
I was charged $13.09 for prime membership, can you tell me what is that price?
12:27 PM PST AkshayNasim I understand your concern.
Please do not worry I'll try my best to resolve this issue.
12:27 PM PST Nasim Fekratit does't correspond with your prices listed here https://www.amazon.com/gp/help/customer/display.html?nodeId=202213110
12:31 PM PST AkshayCould you please confirm last four digit of card on which you've been charged?
12:32 PM PST Nasim Fekrati cancelled my membership which was automatically charged. Don't worry about that
did you check that link?
12:32 PM PST AkshayYes I checked the link.
12:33 PM PST Nasim Fekratif i am charged $13.09 for a 12-month period that adds up to $157.08
but that doesn't say on that page?
it says for one year it is $119 plus tax
can you explain that?
12:34 PM PST Akshayyes correct. $119 plus tax for one year
12:36 PM PST AkshaySubtotal: $12.99
Tax: $0.10

Order Total: $13.09
12:36 PM PST Nasim Fekratthat makes sense but that doesn't add up to $119
12:37 PM PST Akshay$119 plus tax is for one year.
For one year it goes to near about $128 - $129 

12:39 PM PST Nasim Fekratbut $13.09 x 12= $157.08
that number doesn't correspond with what you are saying
12:40 PM PST AkshayIf you purchase for long period you'll get prime in less price as compared to monthly prime. 
12:41 PM PST Nasim Fekratcan you explain that?
it is not mentioned here though
12:42 PM PST Nasim FekratI want to know why
12:42 PM PST AkshaySure.
12:43 PM PST AkshayPlease allow me two minutes while I check this for you.
12:44 PM PST Nasim FekratOk
12:50 PM PST AkshayThanks for your patience while I look into this.
12:51 PM PST Nasim Fekratno problem
12:54 PM PST AkshayAs I've checked the details with my lead we don't have such explanation for the prime charges.
If anyone purchase prime for one year it would be beneficial for them.

12:56 PM PST AkshayI don't mean to rush you, but we've been idle for 1 minute. I want to make sure our chat's still connected. If you aren't able to respond in 1 minute, this chat will close.
12:56 PM PST Nasim Fekratok
i'm here
12:56 PM PST AkshaySure.
12:57 PM PST Nasim FekratCan I talk to someone who can explain this?
Do you have a manager or something?
12:58 PM PST AkshayYes we've but you'll get same resolution from my manager as we both have same resources.
12:59 PM PST Nasim FekratHow will I get that?
01:00 PM PST AkshayDo you want me to connect you to my manager/
01:00 PM PST Nasim FekratYes please
01:01 PM PST AkshaySure.
01:02 PM PST AkshayOne of the our appropriate team me​mber would be able to help you with this. I will transfer this chat to our special team for assistance. please stay connected.​
01:03 PM PST Vinay(Amazon)Hello, my name is Vinay. I'm from the leadership team. Please give me a moment to review the previous correspondence.​
01:04 PM PST Nasim FekratHi Vinay
01:05 PM PST VinayThank you for staying connected. 
I've reviewed your correspondence and I understand your concern regarding the Prime charges. 
01:06 PM PST VinayI want to make sure that you get the correct information.
01:06 PM PST Nasim Fekratsure
01:06 PM PST VinayNasim, If you subscribe for Prime Monthly subscription, you will be charged $12.99 per month. 
01:07 PM PST VinayIf you prefer an annual Prime Subscription, it would be $119.00 
01:08 PM PST VinayIf you subscribe for annual Prime, you will get a benefit of discount with the price. 
01:09 PM PST Nasim FekratRight, I saw that is explained here https://www.amazon.com/gp/help/customer/display.html?nodeId=202213110
01:09 PM PST VinayDefinitely. 
We are sorry but this is the only pricing available and the resolution we could help you with
01:10 PM PST VinayIs there anything else I can assist you with today?
01:10 PM PST Nasim Fekratwait a second please
The price on Amazon page is $119+tax a year
01:10 PM PST VinayYes. That's the one
01:11 PM PST Nasim FekratI was charged $13.09 for a month which is $157.08 for 12 months.
can you explain that egregious differences? 
01:11 PM PST VinayBase charge: 12.99 USD Tax: 0.10 USD Total charge: 13.09 USD
This is the charge including the tax 
01:12 PM PST Nasim Fekratin my state a one year tax is $7.99+$119=$126.99
01:12 PM PST VinayWe are sorry, I could just confirm that the Prime Annual Subscription will come with a discounted price. 
These are the fix charges that Amazon has and we won't be able to provide any further details in this case.
01:12 PM PST Nasim FekratOkay, why isn't that price mentioned on Amazon prime page?
01:13 PM PST VinayTax prices depend upon the region and area.
01:13 PM PST Nasim FekratYou are a manager or in leadership team as you said, can you explain that please? In my state it is $7.99 for a year
01:13 PM PST VinayI'm from the leadership team and this is the only resolution we could help you with. 
01:13 PM PST Nasim FekratBut you didn't answer my question
01:14 PM PST VinayAmazon prime Annual Subscription is for $119.00 + Taxes and not $7.99
01:14 PM PST Nasim Fekratwhat is taxes?
01:14 PM PST VinayI guess we have extended the best we could for you and there is nothing much we could assist you in this case. 
01:15 PM PST VinayIs there anything else I can assist you with today?
01:15 PM PST Nasim FekratOkay, you can't answer why Amazon charges me $157.08?
01:15 PM PST VinayIs there anything else I can assist you with today?
01:15 PM PST Nasim FekratYes, I have another question as well.
01:16 PM PST Nasim FekratI didn't sign up for Amazon Prime. I initially subscribed for a 30-day free trial. Why was I charged for prime membership?
01:16 PM PST VinayIf you wish you may subscribe with Prime Annual Subscription for $119.00
01:17 PM PST VinayThe Auto renew wasn't turned off and hence you were charged automatically after the trial period. 
01:17 PM PST Nasim Fekratdoes the Amazon automatically sign up its customer for Prime membership?
01:18 PM PST VinayThe auto renew was turned on and we have turned off the auto renew 
01:18 PM PST Nasim FekratI did turn it off. I also contacted someone on Amazon to check that. He or she said, I'm not signed up and that option was turned off.
01:19 PM PST VinayI now confirm that it has been turned off and the Prime Subscription has been cancelled. 
01:19 PM PST Nasim FekratIs there someone you could direct me that I can get an explanation regarding $157.08 charge for Amazon Prime for one year?
01:20 PM PST VinayI'm from the leadership team and have explained the details to you. This is the best we could help you with .
Is there anything else I can assist you with today?

01:20 PM PST Nasim FekratNo, sir. You didn't explain to me why Amazon Prime charges me $157.08 for one year. Can you direct me to someone else who could explain this to me?
01:20 PM PST VinayIt was a pleasure to assist you with this. Thank you for contacting Amazon.com. We hope to see you again. Please click "End Chat" to close this window.
01:21 PM PST VinayEND CHAT for me?

So, as you can see Vinay from the leadership team was not willing to explain why Amazon Prime charged me $13.09, which is $157.08 for year. Most of the people with whom I talked to were foreigners. I also speculated that it might be because of unfamiliarity or something that they were not trained for, but when I pressed them for explanation, I realized that they were not actually unaware of it, but rather they were unwilling to explain the price that is designed to fleece innocent customers out of their money. Even sometimes their language was incoherent and impossible to understand. I think they may use Google translator like this one, which sometimes I couldn't understand what he was saying.

What I am trying to convey is that it actually does not say the actual price, which may influence people’s decisions. If we add $.10 cents of tax to $12.99 that is $13.09, which is $157.08 for the entire year - the right amount that I was changed. The issue that I am concerned with is that Amazon Prime does not mention that on it is page. That is an ingenuous scheme. This is unethical and it should not be without consequences.

In 2014, I was charged for the whole year. I only realized towards the end of the year when I checked bank account. I was not notified by e-mail or otherwise. When I contacted Amazon Prime, they said, well, sorry to hear that. You always have the option to cancel your membership. You can cancel your membership now, if you want. That was their excuse. Amazon has carefully planned that and they know how to get away with it because they know that poor customers have no other choice than opting out, but Amazon has already drained their pockets.

Finally, I think it is imperative for everyone to share their experiences and expose schemes and ploys played by giant corporations such as Amazon. We can make them accountable and stop them from exploiting innocent and poor people. (Here I am going off on a tangent a little bit). We should share our ideas and experiences with each other to fight back against corporate greed and aggression. They are leaching off our hard work, our hopes, and success, and then use them against us not only economically but also politically.

Big corporations want to own us and rule us. We need to stand up and not let this happen. We should work together to be creative and raise awareness in our social circles, in colleges and universities, in workplaces, and in households. We have to make our hard work, our sweat, our success matter. This is the hallmark of our modern values. We have to stand for it and don't let giant corporations take control of them.

We need to get these things personal and turn it as a grassroots campaign on the street and on the web. Our laws are our tools, we can hold giant corporations accountable for their actions either it is related to global warming, health issues, human rights crises or small things like falling for the marketing ploy of Amazon Prime.