Amazon is heading to trial in Seattle after the U.S. Federal Trade Commission (FTC) accused the company of using deceptive tactics to push its Prime subscription service. The case, filed in June 2023, alleges that the e-commerce giant knowingly enrolled millions of customers without proper consent and made it unnecessarily difficult for them to cancel.
At the heart of the case are two claims: that Amazon tricked shoppers into joining Prime during checkout and that it created an overly complex cancellation process. Internally, the cancellation system was reportedly nicknamed “Iliad,” a reference to Homer’s lengthy tale of the Trojan War — suggesting how burdensome it was for consumers to exit.
Prime, which costs $139 annually, is a cornerstone of Amazon’s business model. Subscribers typically spend far more on the platform than non-members, making the program crucial to the company’s bottom line. According to court documents, Amazon executives were aware of widespread “nonconsensual enrollment” but resisted design changes because they reduced sign-ups and hurt revenue.
The FTC argues that Amazon’s checkout system featured prominent buttons to accept Prime while burying cancellation links in fine print. It also alleges that vital details such as price and automatic renewal terms were hidden or downplayed. To cancel, customers faced a four-page, six-click, fifteen-option maze.
The lawsuit relies heavily on the Restore Online Shoppers’ Confidence Act (ROSCA), a 2010 law requiring clear disclosure of terms, informed consent, and simple cancellation methods. Regulators say Amazon violated all three standards.
Amazon, however, insists that it has improved its enrollment and cancellation flows, arguing that the FTC’s claims are outdated. Its legal team is expected to focus on whether ROSCA explicitly forbids the practices in question.
The trial is expected to last four weeks, featuring testimony from Amazon executives, expert witnesses, and internal company documents. If the FTC wins, Amazon could face major financial penalties and be forced to overhaul its subscription practices under court supervision.
