Amazon to charge non-Prime consumers to use Alexa: Difference between revisions

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 ==Background==
 Consumers have widely embraced the [[wikipedia:Internet_of_things|Internet of Things]] (IoT) over many years, purchasing both control devices and controlled devices. Until 2025, Amazon had been pursuing a revenue model centred around the sale of their IoT units, culminating in sufficient sales, with over half a billion units sold<ref>{{Cite web |last=Garfinkle |first=Alexandra |date=2023-05-17 |title=Amazon has sold more than 500 million Alexa-enabled devices, drops 4 new Echo products |url=https://finance.yahoo.com/news/amazon-has-sold-more-than-500-million-alexa-enabled-devices-drops-4-new-echo-products-140013808.html |url-status=live}}</ref>, for the IoT services offered through their Alexa platform. However, this precedent was changed in March of 2025,<ref name=":0" /> when Amazon sought to restrict consumer choice and sell more consumer data, and introduce an Alexa+ subscription model to make up for a $25 billion USD loss  from Alexa devices over four years (2017-2021)<ref>{{Cite web |last=Harding |first=Scharon |date=2024-07-23 |title=Alexa had “no profit timeline,” cost Amazon $25 billion in 4 years |url=https://arstechnica.com/gadgets/2024/07/alexa-had-no-profit-timeline-cost-amazon-25-billion-in-4-years/}}</ref>. In March of 2025, Amazon Echo [[Amazon Echo changes terms of voice usage|changed the terms]] of voice usage, [[:File:Upcoming change to your Alexa Settings.png|removing the "Do Not Send Voice" feature]] at the same time as Alexa's capabilities were expanded with generative AI features.
+In 2025, Amazon launched Alexa+, an enhanced version of Alexa powered by advanced artificial intelligence. The service costs $19.99 per month for non-Prime members and is included at no additional cost for Prime subscribers (aboutamazon.com). However, the introduction of Alexa+ raised concerns about privacy. Beginning March 28, 2025, Amazon disabled two key local privacy settings for Alexa: from that date onward, all voice recordings captured by Alexa are processed in the cloud (cio.economictimes.indiatimes.com). Users who opt not to save their recordings also lose access to the Voice ID system and many personalized features, such as customized calendars (cio.economictimes.indiatimes.com). In practice, those seeking to maintain greater privacy must forgo most of Alexa’s “smart” functions. Several industry sources have noted that this enforced trade-off between privacy and advanced features places users in a difficult position (cio.economictimes.indiatimes.com).
 ==Adding a subscription cost==
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 This change comes at a time where many companies are adding a subscription fee, retroactive to user purchases, to access certain features.
+In addition, reports indicate that Amazon intends to monetize Alexa+ through advertising and potential future price increases. CEO Andy Jassy stated in August 2025 that Alexa+ may incorporate advertising and additional subscription elements over time (theverge.com). While commercially legitimate, these strategies have been criticized as further examples of “dark patterns,” potentially disrupting the user experience and encouraging higher spending (theverge.com; ftc.gov). Overall, the Alexa+ subscription and related privacy changes have already generated skepticism: they introduce additional costs for non-Prime users (aboutamazon.com) while simultaneously removing certain privacy-protection options, potentially raising compliance questions under privacy regulations.
+== Why is this a problem? ==
+These reports raise concerns about consumer protection: enrolling a user in a service without clear consent can violate the right to transparent information and fair commercial practices. Worldwide, several authorities have investigated Amazon for similar behavior. For example, in 2023 the U.S. Federal Trade Commission (FTC) accused Amazon of “deceiving millions of consumers” by enrolling them in Prime without explicit consent and making cancellation difficult (ftc.gov). In Italy, the Antitrust Authority (AGCM) fined Amazon €10 million in April 2024 for automatically pre-setting recurring purchase options (“Subscribe & Save”), thereby “significantly limiting consumers’ freedom of choice” (reuters.com). Such practices, whether online or through voice assistants, conflict with principles of the Consumer Code and EU directives that protect informed consent and facilitate the right of withdrawal.
+Complaints about involuntary Alexa subscriptions are part of a global pattern of criticism directed at Amazon. Issues range from subscription transparency to personal data handling and increasingly aggressive marketing strategies (reuters.com; ftc.gov; reuters.com). Past actions—including antitrust fines, FTC complaints, and civil lawsuits—show that many tactics contested in relation to Alexa and Alexa+ may involve violations of consumer rights, such as informed choice, privacy, and ease of cancellation, and are therefore the subject of international scrutiny (reuters.com; ftc.gov; reuters.com).
+== Similar Cases ==
+'''Unfair commercial practices:''' In Italy, the Antitrust Authority (AGCM) found that Amazon “significantly limited consumers’ freedom of choice” by pre-setting recurring purchase options (reuters.com). In the United States, the Federal Trade Commission (FTC) challenged Amazon over similar deceptive techniques in its online offerings, including Prime subscriptions and other services (ftc.gov). These allegations aim to protect the rights to information and free consumer choice, which can be undermined by default options that fail to clearly disclose recurring costs (reuters.com; ftc.gov).
+'''Privacy violations:''' Several legal actions have focused on Alexa and the handling of personal data. In 2025, a U.S. court allowed a class-action lawsuit by Alexa users who accused Amazon of recording private conversations without proper notice (reuters.com). The FTC also cited Amazon for violating the Children’s Online Privacy Protection Act (COPPA) by retaining children’s voice recordings and data against parental wishes (ftc.gov). These cases highlight accusations that Amazon mishandled users’ audio data, violating privacy laws and consent requirements (reuters.com; ftc.gov).
+'''Aggressive monetization:''' Investigations have also noted invasive monetization strategies. Beyond subscriptions, Amazon has introduced advertising on Echo devices with standard Alexa—such as full-screen ads that cannot be disabled—and “by the way” prompts recommending purchases after a voice search (theverge.com). The company has confirmed its intention to expand such techniques within Alexa+, including new forms of advertising (theverge.com). These strategies have drawn attention from authorities and consumers for their potential to exploit user experience.
 ===Amazon's response===