Amazon Goes on Trial as FTC Accuses it of Duping Prime Subscribers

The U.S. trial began on Tuesday, as the Federal Trade Commission accused Amazon of tricking its customers into unwanted Prime subscriptions. The case may test how far regulators can challenge big tech’s business practices. 

According to the FTC, Amazon was aware that millions of users were being signed up for Prime without fully understanding the process. However, instead of improving its sign-up and cancellation flows, the agency claims Amazon left them complex and opaque to protect its bottom line.  The agency argues that Amazon prioritised growing its membership over ensuring clarity and obtaining consent. Amazon denies wrongdoing. Its lawyers say the terms were clearly disclosed, and that cancelling Prime was reasonably straightforward.  They say the FTC is exaggerating and misrepresenting how users experienced the subscription process. 

At the trial’s opening, the FTC also pointed to what it calls the “Iliad flow” — a multi-step cancellation path that required as many as seven clicks to complete, even though Amazon told users the process was simpler.  The agency says tens of millions began the cancellation flow but abandoned it partway.  Amazon counters that some of the internal documents used by the FTC are taken out of context. 

If the court rules in favour of the FTC, Amazon may face substantial fines, damages, and increased oversight of its consumer subscription practices.  The trial is expected to last approximately a month and will include testimony from current and former Amazon employees, as well as customers.