Amazon will face a trial next month as the Federal Trade Commission (FTC) accuses the company of tricking millions of customers into signing up for Prime subscriptions. The FTC states that Amazon also made it difficult to cancel these subscriptions.
The lawsuit claims that Amazon has used deceptive website designs called “dark patterns” to enroll people without their clear consent. Some customers were automatically signed up when they clicked on certain buttons, while the option to opt out of Prime was hidden. Internal documents from Amazon referred to this issue as an “unspoken cancer,” indicating that the company was aware that many people were being enrolled without their consent.
The cancellation process, known as “Iliad” among Amazon employees, was made unnecessarily complicated. Customers had to go through many steps and confusing pages, which often stopped them from successfully cancelling. The FTC says this breaks US consumer protection laws that require clear subscription details, permission before charging, and easy ways to cancel.
Three Amazon executives, Jamil Ghani, Neil Lindsay, and Russell Grandinetti, are named in the lawsuit. The FTC claims they removed fixes that made subscriptions clearer, to keep more subscribers. A judge has stated that two of these executives could be personally liable if Amazon loses the trial.
However, Amazon denies any wrongdoing. A company spokesperson said that the subscription and cancellation systems comply with industry standards. They also said recent updates have made signing up and cancelling clearer. Amazon insists its executives acted correctly and always put customers first.
Prime brought in more than $44 billion in revenue last year, making this trial very important for Amazon. The case could also affect other subscription services, as regulators scrutinize methods that prevent users from canceling.
The trial is scheduled to take place in Seattle and is expected to last approximately four weeks. Evidence will include Amazon's internal messages, executive statements, and expert opinions. The FTC seeks fines, refunds for customers, and orders compelling Amazon to enhance its subscription process.
This is Amazon’s first big legal challenge under FTC chair Lina Khan. It is separate from other lawsuits accusing Amazon of monopolistic practices. Experts say the trial could establish guidelines for how subscription services handle sign-ups and cancellations in the future.
The case highlights growing concerns from regulators about how large online companies treat their customers. It could change how subscriptions are offered and cancelled across the tech world.
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