Is canceling Amazon Prime too difficult? A jury will decide
What's the story
Amazon is gearing up for a month-long trial against the US Federal Trade Commission (FTC) over its Prime program. The FTC has accused the tech giant of tricking millions into signing up for its membership and making it difficult to cancel. The jury selection process begins today, followed by opening arguments in Seattle. This case is one of several Big Tech trials initiated by the US government this year, and it marks a major legal battle against Amazon.
Allegations
Allegations of misleading consumers and dark patterns
The FTC has accused Amazon of violating Section 5 of the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). The commission alleges that Amazon misled consumers about its sign-up and cancellation process for Prime benefits. It also claims that the company used dark patterns to trick users into signing up for Prime without their consent or knowledge. Once subscribed, it allegedly became hard for users to cancel their membership, with changes being delayed.
Potential consequences
Potential personal liability for Amazon executives
If proven during the trial, the FTC could hold Amazon executives personally liable for violations. The government recently won a major ruling from Judge John Chun, who found that Amazon violated ROSCA by collecting customers' billing information before disclosing key terms of the Prime membership. He also ruled that two Amazon executives could be held personally liable if the FTC proves misconduct at trial due to their high involvement in Prime's enrollment and cancellation practices.
Company's response
Amazon denies allegations, calls them 'false'
Amazon has denied the FTC's allegations, with spokesperson Heather Layman calling them "false on the facts and the law" when it was filed back in 2023. She added that "the truth is that customers love Prime, and by design we make it clear and simple for customers to both sign up for or cancel their Prime membership." The company agreed to simplify its Prime cancellation process in Europe in 2022 in response to regulatory pressure.
Legal test
Major test for FTC's crackdown on deceptive subscription practices
The FTC's trial against Amazon will be a major test of the agency's crackdown on allegedly deceptive digital subscription practices. The commission is seeking civil penalties, consumer refunds, and a court order barring Amazon from using potentially misleading subscription practices. The case comes as part of the FTC's broader effort to combat dark patterns, digital traps designed to manipulate consumer behavior for corporate gain.
Enforcement campaign
Similar cases against other companies
The FTC has pursued similar cases against other companies, including LA Fitness and Uber, this year. The agency has also reached settlements with education technology company Chegg for $7.5 million and Match Group for $14 million. Separately, the FTC and several state attorneys general are pursuing an antitrust lawsuit against Amazon, accusing it of illegal monopolization to maintain its position in the online marketplace.