Jury to Decide if Amazon Deceived Users into Prime Payments
▼ Summary
– Amazon is facing a trial from the FTC over allegations that it tricked customers into signing up for Prime and made it difficult to cancel.
– The FTC claims Amazon used deceptive “dark patterns” to enroll users and violated laws requiring clear consent for recurring charges.
– A judge has already ruled that Amazon violated one law by collecting billing information before disclosing Prime terms and that executives could be held personally liable.
– Amazon denies the allegations, stating its sign-up and cancellation processes are clear and simple, and it previously simplified cancellation in Europe.
– This case is part of broader regulatory efforts against Big Tech, with the FTC also pursuing other subscription-related lawsuits.
A major legal showdown is set to unfold in Seattle as Amazon defends its Prime subscription program against allegations brought by the Federal Trade Commission. The trial, expected to last about a month, centers on claims that the e-commerce giant misled millions of users into enrolling for Prime memberships and deliberately complicated the cancellation process.
This case represents one of several high-profile government actions against Big Tech firms this year, though it marks the first significant trial against Amazon in recent memory. Jury selection begins Monday, with opening arguments to follow. The FTC has also filed a separate antitrust lawsuit against the company, scheduled for 2027.
Central to the current litigation is the accusation that Amazon employed deceptive design practices, often called dark patterns, to enroll consumers into Prime without their full understanding or consent. Regulators argue the company violated both the FTC Act and the Restore Online Shoppers’ Confidence Act, which mandates clear disclosure of terms before obtaining billing information. Once subscribed, users allegedly faced unnecessary obstacles when trying to cancel their memberships.
In a pivotal pre-trial ruling, Judge John Chun found that Amazon had indeed violated ROSCA by gathering payment details before fully informing customers about Prime’s terms. He also determined that two Amazon executives could face personal liability if the FTC proves its case. The judge previously criticized the company for withholding documents in what he described as a display of “bad faith.”
Amazon has vigorously denied any wrongdoing. A company spokesperson stated that the allegations are “false on the facts and the law,” emphasizing that Prime is designed to be transparent and user-friendly. The company points to its popularity among subscribers and highlights that it simplified cancellation procedures in Europe following regulatory scrutiny there.
The case reflects a broader regulatory focus on subscription practices, an issue that has drawn bipartisan concern. While a proposed “click-to-cancel” rule backed by former FTC Chair Lina Khan was recently overturned, the agency continues to pursue enforcement in this area. A new lawsuit against Uber similarly alleges obstructive cancellation tactics for its subscription service, signaling ongoing scrutiny of how companies manage recurring payments.
(Source: The Verge)
