Jury selection begins for FTC’s lawsuit against Amazon Prime cancellations

Jury selection began for an FTC lawsuit brought against Amazon, alleging deceptive practices against customers trying to cancel memberships. — Image credit: Cheng Xin/Contributor via Getty Images

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Summary

FTC allegations

The FTC alleges that Amazon enrolled millions of customers into Prime memberships without their consent and made it difficult for customers to cancel subscriptions.

Amazon’s response

Amazon officials have denied the allegations made by the FTC, who describe the claims as false and say the company made it "clear and simple" for customers to sign up and cancel Prime memberships.

Legal proceedings

Judge John Chun is overseeing the case and recently ruled that Amazon violated the Restore Online Shoppers’ Confidence Act (ROSCA) by collecting billing information before disclosing Prime membership terms.

Full story

Amazon tricked millions of people into signing up for its Prime subscription plan, the Federal Trade Commission alleges in a trial that begins Monday in Seattle. The commission filed the lawsuit in 2023, accusing the online retail giant of using deceptive designs in its user interface to deceive consumers and make it difficult to cancel subscriptions.

This is one of two lawsuits the FTC brought against the company.

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What does the FTC allege?

The FTC said Amazon spent years enrolling customers into Prime memberships without their consent and made it difficult for consumers to cancel subscriptions. Authorities said the company did this knowingly and used “dark patterns” to trick customers into automatically renewing subscriptions.

The lawsuit also claims the primary purpose of Amazon’s cancellation process wasn’t actually to cancel memberships but to stop consumers from canceling. The FTC said leadership at Amazon slowed or rejected changes that would have made it easier for users to cancel memberships.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” former FTC Chair Lina M. Khan said in a 2023 press release.

Why is this case critical?

According to The Verge, this is the first major case against Amazon by the U.S. government in recent memory.

U.S. District Judge John Chun, who is presiding over the case, gave the government a big win last week. Chun ruled Wednesday that Amazon violated the Restore Online Shoppers’ Confidence Act (ROSCA) by collecting customers’ billing information before it disclosed the terms of Prime memberships. He also said two Amazon executives should be held personally liable if the FTC can prove the violations during trial.

ROSCA requires sellers to get informed consent from consumers before they charge them.

How has Amazon responded?

Amazon officials have denied the FTC allegations. In 2023, spokesperson Heather Layman called the claims false and said users love Prime, according to The Verge. Layman also noted that Amazon made it “clear and simple” for customers to sign up and cancel memberships.

However, in 2022, the company agreed to simplify its cancellation process in Europe following pressure from regulators. Amazon has also created a cancellation page that shows members options on how to cancel or pause their Prime membership.

Both Republicans and Democrats have gone after recurring subscription fees. Khan, who led the FTC during the Biden administration, pushed for easy ways to cancel subscriptions. However, an appeals court struck down her “click to cancel” rule in July.

President Donald Trump’s FTC chair, Andrew Ferguson, opposed Khan’s rule, but he has continued her lawsuit against Amazon.

Devin Pavlou

Devin Pavlou is a digital producer at Straight Arrow News.

Tags: amazon, Amazon Prime, Federal Trade Commission, FTC, Lawsuit

Why this story matters

The lawsuit against Amazon over its Prime membership practices highlights increasing regulatory scrutiny of digital subscription models and may set important precedents for consumer protection and online business operations.

Consumer protection

The case centers on allegations by the Federal Trade Commission that Amazon used deceptive practices, which draws attention to how consumer rights are upheld in the rapidly evolving digital marketplace.

Corporate accountability

Judge Chun ruled that Amazon executives could be held personally liable if violations are proven, and the trial’s outcome could impact how companies and leaders answer for business practices perceived as unfair.

Digital subscription transparency

The core issue involves the clarity and fairness of subscription sign-up and cancellation processes, raising broader questions about transparency required from online platforms and influencing regulatory approaches to automated billing models.

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Synthesized coverage insights across 65 media outlets

Behind the numbers

Prime membership generates an estimated $25 billion in annual revenue for Amazon, and third-party analysts estimate 197 to over 200 million global subscribers. Membership costs $139 per year or $14.99 monthly. The FTC alleges up to 40 million users were improperly enrolled.

History lesson

Efforts to curb "dark patterns" have increased globally in recent years, but the legal focus on negative option billing in the US originated with ROSCA in 2010. The FTC’s current approach builds on a long tradition of consumer protection regulation.

Policy impact

A ruling against Amazon could require broad changes to subscription processes industry-wide, mandating clearer disclosures and easier cancellations, potentially affecting other businesses using similar models and increasing legal accountability for executives.

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Sources

Bias comparison

Media outlets on the left sharply emphasizes Amazon’s deliberate deception, using charged terms like “knowingly duped” and “dark patterns” to frame the company as exploiting consumers through manipulative design, conveying a tone of consumer advocacy and moral urgency.
Not enough unique coverage from media outlets in the center to provide a bias comparison.
Media outlets on the right largely de-emphasize intent or consumer harm, focusing instead on regulatory overreach and Amazon's legal defense, often adopting a cautious or skeptical tone toward the FTC’s claims without emotive language.

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Media landscape

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65 total sources

Key points from the Left

The Federal Trade Commission alleges that Amazon used "dark patterns" to trick consumers into signing up for Prime during checkouts.
Amazon is accused of enrolling customers without clear consent and creating a complex process for cancellation, referred to internally as "Iliad."
Court documents reveal that Amazon was aware of widespread "nonconsensual enrollment" in Prime but resisted changes that would reduce these sign-ups due to revenue concerns.
The FTC seeks penalties, monetary relief, and permanent injunctions to compel Amazon to change its practices regarding Prime sign-ups and cancellations.

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No coverage from Far Left sources 0 sources
No coverage from Left sources 0 sources
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Key points from the Center

The Federal Trade Commission is starting a legal case this week in Seattle targeting Amazon over claims of misleading consumers about its Prime subscription and making cancellations difficult.
In 2023, the Federal Trade Commission brought a lawsuit alleging that Amazon used deceptive design tactics to enroll millions of consumers into its Prime service without clear consent and made it difficult for customers to cancel their subscriptions.
Amazon allegedly used a multi-page, multi-click, and multi-option cancellation process called Iliad Flow, while enrollment was simplified and critical details hidden in fine print.
Judge John Chun ruled last week that Amazon unlawfully collected billing information before disclosing terms, and the FTC seeks penalties, monetary relief, and permanent injunctions.
Should the FTC win the case, Amazon may incur significant financial penalties, hold executives personally accountable and be compelled to implement major changes in how subscription services are marketed across the technology sector.

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See Hide headlines from Center sources 26 sources

Key points from the Right

The Federal Trade Commission alleges that Amazon used "dark patterns" to mislead customers into signing up for its $139-per-year Prime service during checkouts.
The case focuses on allegations that Amazon enrolled customers without clear consent and made cancellation difficult through a complex system nicknamed "Iliad."
The FTC claims that Amazon's checkout process forced customers to navigate confusing interfaces to decline Prime membership, while sign-ups were easier.
If successful, the FTC seeks financial penalties and an injunction to require Amazon to change its subscription practices.

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