Is Amazon making it too easy to join Prime — and too hard to leave? A jury is about to decide

Washington: Amazon is facing trial in the United States over allegations that it used deceptive design tactics to enroll millions of customers into its Prime subscription service without their clear consent — and then made it extremely difficult for them to cancel.

The case, brought by the US Federal Trade Commission (FTC), centres on claims that the e-commerce giant knowingly employed manipulative user interface techniques — known as “dark patterns” — to nudge consumers into subscribing to Prime. The FTC also alleges that Amazon intentionally designed a “labyrinthine” cancellation process to prevent users from leaving the service.

Jury selection began Monday in a Seattle federal courtroom, with opening statements from both sides scheduled for Tuesday. Witness testimony is expected to follow, and the jury trial is likely to last around four weeks. The proceedings will rely heavily on internal Amazon documents, communications, and executive testimony.

How has Amazon been manipulating users?

Filed in June 2023, the FTC’s complaint accuses Amazon of long-standing efforts to increase Prime subscriptions using misleading and coercive design elements. According to the regulator, during the online checkout process, Amazon made it easy to sign up for Prime using prominent buttons, while options to decline were difficult to find and less visually noticeable.

Crucial details — such as the subscription’s cost and the fact that it renews automatically — were often hidden or buried in fine print, the FTC claims.

The agency also targets Amazon’s cancellation process, which it says required navigating through four separate pages, six clicks, and as many as fifteen distinct options. Internally, Amazon is said to have nicknamed the system “Iliad”, after Homer’s epic poem about a long and arduous war — a reflection, the FTC argues, of the company’s intent to make cancellation as difficult as possible.

“For years, Amazon has knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service,” the complaint states.

The FTC alleges that Amazon was aware of widespread “nonconsensual enrollment” but resisted implementing changes that would have reduced unintended sign-ups, as such changes would negatively impact the company’s revenue.

Has the court already ruled against Amazon?

Ahead of the trial, US District Court Judge John Chun ruled that Amazon violated an online shopper protection law by collecting billing information from Prime subscribers before fully disclosing the terms of the service.

That summary judgment puts Amazon at a disadvantage as it faces trial before a jury in Judge Chun’s courtroom.

Judge Chun is also overseeing a separate FTC case in which Amazon is accused of operating an illegal monopoly. That trial is expected to begin in 2027.

What laws is Amazon alleged to have broken?

The FTC’s case partially relies on the Restore Online Shoppers’ Confidence Act (ROSCA), a 2010 law that prohibits charging consumers for online services without:

• Clear disclosure of terms,
• Express informed consent, and
• A simple, straightforward cancellation process.

The FTC alleges Amazon violated ROSCA by failing to clearly present Prime’s terms before collecting payment, and by not securing genuine consent before charging customers.

If the FTC prevails, Amazon could face significant monetary penalties and be compelled to overhaul its subscription practices under court supervision. The regulator is seeking financial relief for affected consumers, as well as permanent injunctions to prevent further violations.

What is the company’s response?

Amazon has denied any wrongdoing. Its defence strategy is expected to argue that neither ROSCA nor other applicable laws explicitly prohibit the practices in question. The company contends that the FTC is interpreting the law too broadly.

Amazon also claims that it has improved both the Prime sign-up and cancellation experiences, and that many of the FTC’s allegations are outdated.

Prime is a cornerstone of Amazon’s business model. Subscribers typically spend significantly more on the platform than non-members, making the growth and retention of Prime users a key driver of the company’s profitability.

AFP