Amazon went to trial on Monday in a closely watched case that could reshape how tech companies sell subscriptions online.
The US Federal Trade Commission (FTC) accuses the company of using “dark patterns” — manipulative website designs — to push millions of shoppers into its $139-a-year Prime programme, often without their full consent.
Regulators also say Amazon deliberately built a cancellation process so complicated that staff inside the company jokingly called it “Iliad,” a nod to Homer’s epic tale of a war that dragged on for years.
The case is being heard in federal court in Seattle by Judge John Chun, who is also overseeing a separate FTC lawsuit accusing Amazon of running an illegal monopoly. That trial is scheduled for 2027.
“For years, Amazon has knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service,” the FTC said in its original complaint, filed in June 2023.
A test of power
The trial comes amid a wave of lawsuits against America’s largest tech firms. After years of relatively light oversight, regulators from both political parties are now moving aggressively to curb what they see as unchecked corporate power.
Court filings show Amazon executives were aware of widespread “non-consensual enrolment” into Prime but resisted fixing the process. Changes that might have reduced unwanted sign-ups were deemed too damaging to revenue, according to the FTC.
Shoppers trying to avoid Prime were often left hunting for faint, inconspicuous links, while the option to join was splashed in bold buttons. Key details about automatic renewal and cost were sometimes buried in fine print.
Once signed up, cancelling could take six clicks across four pages with up to 15 options to navigate, the FTC alleges.
Amazon fights back
Amazon has denied wrongdoing. The company argues that the FTC is misreading consumer law, particularly the Restore Online Shoppers’ Confidence Act (ROSCA), which requires clear disclosure and simple cancellation for internet services.
Its lawyers say ROSCA does not specifically outlaw the practices in question and that regulators are “stretching” the statute beyond its intent. Amazon has also insisted that its enrolment and cancellation systems have improved in recent years and that the allegations are outdated.
Prime membership, which launched nearly two decades ago, has become the cornerstone of Amazon’s business model. Subscribers tend to spend far more than non-members, making them vital to the company’s long-term growth.
What’s at stake
The jury trial is expected to run for about four weeks, drawing heavily on internal emails, company documents, and testimony from executives and expert witnesses.
If the FTC prevails, Amazon could be hit with significant financial penalties and ordered to overhaul its subscription practices under court supervision.
The outcome may also ripple beyond Amazon. Consumer advocates say it could set a precedent for how far tech firms can go in designing systems that nudge — or trap — users into recurring payments.
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