Amazon is set to face a US trial on Monday over allegations that it used deceptive practices to enroll millions of customers in its Prime subscription service. The Federal Trade Commission (FTC) filed a complaint in June 2023, accusing the e-commerce giant of using “dark patterns” to trick consumers into signing up for the $139-per-year service during checkouts.
The case centers on two main! allegations: that Amazon enrolled customers without clear consent through confusing checkout processes, and that it created a deliberately complex cancellation system, internally nicknamed “Iliad”. The FTC claims that Amazon was aware of widespread “nonconsensual enrollment” in Prime but resisted changes that would reduce these unwanted sign-ups, as they negatively affected the company’s revenue.
According to court documents, Amazon’s checkout process forced customers to navigate confusing interfaces, where declining Prime membership required finding small, inconspicuous links, while signing up for the service was through prominent buttons. Crucial information about Prime’s price and automatic renewal was often hidden or disclosed in fine print, the FTC alleges.
The lawsuit also targets Amazon’s cancellation process, which required customers to navigate a “labyrinthine” four-page, six-click, fifteen-option process to cancel their membership. The FTC is seeking penalties, monetary relief, and permanent injunctions requiring the company to change its practices.
The case relies on the Restore Online Shoppers’ Confidence Act (ROSCA) legislation, which prohibits charging consumers for internet services without clear disclosure of terms, obtaining express consent, and providing simple cancellation mechanisms. Amazon’s defense strategy will focus on arguing that ROSCA and other regulations don’t specifically prohibit the practices in question.
The jury trial is expected to last about four weeks and will largely rely on internal Amazon communications and documents, as well as Amazon executives and expert witnesses. If the FTC prevails, Amazon could face substantial financial penalties and be required to overhaul its subscription practices under court supervision. The outcome of this trial will have significant implications for the company’s business model, as Prime subscribers spend significantly more on the platform than non-members.
