Amazon faces jury trial over accusations of deceptive Prime subscription practices

A federal trial is underway in Seattle where Amazon is accused of tricking customers into Prime memberships and making them difficult to cancel.

23 sept 2025 - 14:41 • 3 min read

Amazon is facing a federal jury trial in Seattle over accusations that it used deceptive practices to enroll millions of customers into its Prime subscription service and then made it intentionally difficult to cancel.

The Federal Trade Commission (FTC) filed the lawsuit in June 2023, alleging that the e-commerce giant knowingly employed "dark patterns" – manipulative design elements – to trick consumers into signing up for the $139-a-year Prime membership during the checkout process.

Oral arguments in the trial were expected to begin Tuesday and are slated to last for nearly a month. This case marks a significant federal legal challenge against one of the world's largest companies, with a jury tasked with determining whether Amazon violated consumer-protection and competition laws.

The FTC's complaint details two primary allegations. First, it claims that Amazon enrolled customers into Prime without their clear consent through confusing checkout interfaces. As an example, regulators pointed to a prominent "Get FREE Two-Day Shipping" button that facilitated Prime sign-ups, while declining the service required users to locate a small, inconspicuous hyperlink.

Secondly, the lawsuit targets the cancellation process, which the FTC describes as a deliberately complex, multi-step procedure that Amazon employees internally nicknamed "Iliad Flow," referencing the arduous journey of Homer's epic poem. This process, according to the FTC, involved navigating a four-page, six-click, 15-option journey designed to dissuade customers from canceling. In contrast, signing up for Prime could be accomplished in as few as two clicks, with crucial details about recurring charges often buried in fine print.

Amazon vehemently denies the allegations. The company contends that its Prime members are attracted by the service's value and that its design and disclosure practices align with, or exceed, industry standards. In its trial brief, Amazon stated that occasional customer misunderstandings are inevitable for a popular program and do not prove a violation of law.

Amazon also argues that the term "dark patterns" is not legally defined, and the FTC is overextending existing fraud laws through interpretation. However, legal experts note that such laws are intentionally broad to accommodate evolving technologies and business practices.

In July, U.S. District Judge John Chun, who is also presiding over a separate FTC lawsuit accusing Amazon of operating as an illegal monopoly slated for trial in 2027, admonished Amazon's legal team for tactics that appeared "tantamount to bad faith." The FTC had accused Amazon of withholding evidence by excessively marking filings as privileged, a claim Amazon later largely retracted.

The FTC is seeking penalties, monetary relief, and permanent injunctions to compel Amazon to alter its practices. If the FTC prevails, Amazon could face substantial financial penalties and be required to overhaul its subscription management under court supervision.

Amazon has stated it has made changes to its Prime enrollment and cancellation processes, including the introduction of a dedicated cancellation page outlining customer options. However, the FTC asserts that the core deceptive practices continued until at least 2023.

This case is part of a broader effort by U.S. authorities to regulate the power of major technology companies, a trend that has seen increased bipartisan support in recent years.