The line between “growth hacking” and “consumer grifting” is now for a jury to decide, as a federal trial against Amazon gets underway. The U.S. government is accusing the company of crossing that line, alleging that its methods for growing its Prime service were illegal and deceptive.
“Growth hacking” refers to the tech industry practice of using clever, often psychological, techniques to rapidly expand a user base. The FTC’s lawsuit argues that Amazon’s use of “dark patterns” was a form of growth hacking that devolved into a grift, tricking users into signing up for a service they didn’t want.
The trial will also examine the “Iliad” cancellation process through this lens. The government will argue that this was a “retention hack,” a technique designed to keep user numbers artificially high by making it too difficult for people to leave.
This case is a direct challenge to the “growth at all costs” culture that has been celebrated in Silicon Valley. The FTC is seeking to send a clear message that there are legal limits to the techniques companies can use to acquire and retain customers.
Amazon will defend its methods as legitimate growth strategies. The company will argue that it was simply using innovative and effective marketing to promote a popular service and that the term “grifting” is a malicious and unfair characterization of its practices.