The Federal Trade Commission (FTC) is taking Amazon to trial over allegations that the company tricked customers into signing up for its Prime membership service and made it difficult for them to cancel. The trial, which is set to begin on Monday in Seattle, is expected to last about a month. The FTC claims that Amazon used deceptive design practices, known as “dark patterns,” to manipulate users into subscribing to Prime without fully understanding the commitment.
Once signed up, the FTC alleges that Amazon employed tactics to complicate the cancellation process, maximizing its revenue from the service. Amazon has denied any wrongdoing. Spokesperson Heather Layman stated, “The FTC’s claims are false on the facts and the law.
We look forward to presenting our case in court.”
Judge John Chun has already ruled that Amazon violated the Restore Online Shoppers’ Confidence Act (ROSCA) by collecting customers’ billing information before disclosing the material terms of the Prime membership.
Amazon Prime trial begins Monday
This ruling means that if the FTC proves its case, Amazon executives could be held personally liable for the violations.
The government’s case against Amazon has received bipartisan support, with both Republicans and Democrats emphasizing the importance of consumer protection from recurring subscription fees. The outcome of the trial could set a precedent for how technology companies manage subscription services and obtain consumer consent. Prime, which now costs $139 per year or $14.99 a month, includes benefits such as fast shipping, video streaming, and discounts at Whole Foods.
It has grown to become what the FTC describes as “the world’s largest subscription service,” bringing in more than $44 billion in revenue for Amazon last year. The FTC began investigating Amazon Prime in March 2021, shortly before Lina Khan, known for her critical legal analysis of Amazon, was nominated as FTC chair by President Biden. The probe, which started in the final days of the Trump administration, has continued under the current administration, resulting in the 2023 lawsuit against Amazon.