Amazon is set to face trial on Monday in a landmark case brought by the U.S. Federal Trade Commission (FTC), which accuses the tech giant of deceptive practices surrounding its Prime subscription service. The lawsuit, filed in June 2023, alleges that Amazon used manipulative user interface designs—commonly referred to as “dark patterns”—to enroll millions of customers in Prime without their clear consent and made the cancellation process deliberately burdensome.
At the heart of the case are two key accusations:
- Nonconsensual Enrollment:
The FTC claims Amazon used confusing checkout designs to steer users into signing up for Prime, often hiding crucial information like pricing and auto-renewal terms in fine print. Prominent buttons encouraged enrollment, while opt-out options were obscured or difficult to find. - Difficult Cancellation:
Internally dubbed “Iliad,” Amazon’s cancellation process was described as a complex, multi-step journey—spanning four pages, six clicks, and fifteen different options—designed to deter users from successfully ending their subscriptions.
According to court filings, Amazon was aware of widespread accidental enrollments but allegedly resisted internal efforts to simplify the process, citing revenue impacts. Prime, which costs $139 per year, is a cornerstone of Amazon’s business strategy, with subscribers typically spending significantly more on the platform than non-members.
The trial will take place in federal court in Seattle under Judge John Chun, who is also overseeing a separate FTC antitrust case against Amazon set for 2027. The FTC is pursuing financial penalties, consumer refunds, and a permanent injunction to force Amazon to change its subscription practices.
The lawsuit hinges in part on the Restore Online Shoppers’ Confidence Act (ROSCA)—a 2010 law that prohibits online companies from charging users without clear terms, affirmative consent, and easy cancellation mechanisms. The FTC argues Amazon violated all three requirements.
Amazon’s legal defense is expected to challenge the FTC’s interpretation of ROSCA, arguing that the company’s practices were lawful and that many of the allegations are outdated, noting that it has since improved both enrollment and cancellation processes.
The trial is expected to last around four weeks and will involve testimony from Amazon executives, internal communications, and expert witnesses. A ruling against Amazon could not only result in significant financial penalties but also set a precedent for how subscription-based digital services must operate going forward.
