The Federal Trade Commission has initiated a lawsuit against Amazon, claiming that the company employed misleading online designs to trick millions into signing up for Amazon Prime. The lawsuit, part of the Biden administration’s efforts in 2023, accuses Amazon of creating an intentionally complex system that hindered users from opting out. The complaint alleges that Amazon utilized ‘dark patterns’ to lure customers into enrolling in its auto-renewing subscription service. Additionally, the FTC contends that the cancellation process for Prime memberships was made difficult, time-consuming, and purposely burdensome to dissuade consumers from completing it. An Amazon spokesperson refuted these claims, asserting, ‘The bottom line is that neither Amazon nor the individual defendants did anything wrong.
We remain confident the facts will show these executives acted properly, and we always put customers first.’ Amazon Prime has evolved into a highly profitable service, now priced at $14.99 per month or $139 annually, offering not only faster deliveries but also access to streaming content, grocery delivery, fuel discounts, and exclusive shopping deals. Although Amazon does not reveal the number of Prime subscribers in the U.S., Consumer Intelligence Research Partners estimated that there were 197 million members by March 2025. The trial is expected to span approximately one month, with jury selection starting Monday and opening arguments on Tuesday. If the jury determines that Amazon breached consumer protection laws, the judge will decide the financial penalties.
The court documents also indicate that as early as 2016, Amazon allegedly had a complex, multi-step cancellation process for Prime, which was internally referred to as the ‘Iliad Flow,’ drawing a parallel to the epic tale of the Trojan War.