FTC Study Reveals Widespread Use of Dark Patterns in Subscription Apps and Websites
A recent study conducted by the U.S. Federal Trade Commission (FTC) and two other international consumer protection networks has shed light on the pervasive use of “dark patterns,” manipulative design techniques that exploit users’ privacy or coerce them into making purchases or taking actions they wouldn’t otherwise choose. The study analyzed 642 websites and apps offering subscription services and found that a staggering 76% of them employed at least one dark pattern, with nearly 67% using multiple techniques.
Dark patterns encompass various design strategies that subtly encourage users to act in a certain way or compromise their privacy. These tactics are particularly prevalent in subscription-based platforms, and the FTC has previously taken legal action against dating app giant Match for its fraudulent practices, which included employing dark patterns to make canceling subscriptions difficult.
The release of this new report suggests that the FTC may be ramping up its efforts to combat such consumer fraud. Notably, this report comes at a time when the U.S. Department of Justice is suing Apple over its alleged App Store monopoly, a lucrative marketplace for digital goods and services, including subscription apps.
The study delves into different types of dark patterns, including sneaking, obstruction, nagging, forced action, social proof, and more. Sneaking, the most prevalent dark pattern identified in the study, refers to the inability to disable auto-renewal during the signup or purchase process. A staggering 81% of sites and apps studied utilized this technique to ensure automatic subscription renewals. Additionally, 70% of subscription providers failed to provide information on canceling subscriptions, and 67% did not specify the deadline for cancellation to avoid additional charges.
Obstruction is another commonly encountered dark pattern in subscription apps. It makes certain actions, such as canceling a subscription or bypassing a free trial signup, more challenging or cumbersome. For instance, the “X” button to close an offer may be intentionally grayed out or hidden from view.
Nagging involves incessantly prompting users to perform specific actions desired by businesses. An example of nagging is TikTok’s persistent requests for users to upload their contacts, even after the initial refusal.
Forced action requires users to complete certain steps to access particular functionalities, such as providing payment details for a free trial. Approximately 66.4% of websites and apps examined in the study employed this tactic.
Social proof takes advantage of the power of the crowd to influence consumer behavior, often persuading them to make a purchase. This technique is commonly used in e-commerce, where companies display metrics relating to user activity on a product page. In subscription apps, social proof may be employed to encourage users to enroll by showcasing how many others have done the same. The study found that 21.5% of websites and apps utilized notifications and other forms of social proof to drive subscription enrollment.
Creating a sense of urgency is another method employed by sites to prompt consumers to make a purchase. While this technique is prevalent in e-commerce, it is less commonly used for selling subscriptions.
Interface interference encompasses various design choices aimed at favoring businesses’ interests and influencing consumer decision-making. These include pre-selecting longer or more expensive subscription options, as observed in 22.5% of the studied cases. Another technique, known as “false hierarchy,” visually emphasizes more advantageous options for businesses. Approximately 38.3% of businesses in the study employed this approach. The study also identified “confirmshaming” as a form of interface interference, where language evokes emotions to manipulate consumer decision-making, such as using phrases like “I don’t want to miss out, subscribe me!”
The study was conducted as part of the International Consumer Protection and Enforcement Network’s (ICPEN) annual review and involved 27 authorities from 26 countries. While the study did not determine the legality of these practices in different countries, it serves as a comprehensive examination of dark patterns across subscription websites and apps. The FTC’s involvement in ICPEN’s review, alongside the Global Privacy Enforcement Network, underscores the international significance of addressing dark patterns.
This recent report builds upon previous FTC research conducted in 2022, which examined dark patterns across various industries, including e-commerce and children’s apps. It is evident that the FTC remains committed to combating manipulative design practices and protecting consumers’ rights in the digital landscape.
