FTC Lawsuit Against Amazon Prime
A Federal Trade Commission (FTC) complaint alleging that Amazon.com enrolled millions of customers in its premium Amazon Prime service without their knowledge was denied by a US judge in Seattle on Tuesday.
Amazon’s Defense
Attorneys for Amazon argued that the company had transparently disclosed important terms to Prime members, including pricing and automatic renewal details. They also refuted the FTC’s claims of using “manipulative” website designs.
FTC Allegations
The FTC lawsuit, filed in June 2023, accuses Amazon of employing misleading tactics to make it challenging for customers to cancel their Prime subscriptions, resulting in unauthorized charges for several months.
- Amazon allegedly utilized deceptive user-interface designs, known as ‘dark patterns’, to trick customers into automatic Prime membership renewals.
- The FTC seeks monetary sanctions and a permanent injunction to prevent future violations.
Antitrust Allegations
In addition to the Prime enrollment issue, Amazon faces antitrust allegations for allegedly restricting retailers from offering lower prices than those on its platform.
- The trial for the antitrust action is scheduled for October 2026.
Response and Changes by Amazon
Amazon made changes to its Prime cancellation process in April 2023 following criticism from the FTC. However, the FTC’s complaint highlights that the cancellation process still requires multiple clicks for both desktop and mobile users.