Amazon is preparing for a pivotal court hearing in Seattle as it faces allegations from federal regulators regarding its Prime membership practices. The case, initiated by the Federal Trade Commission (FTC) in 2023, claims the e-commerce giant misled customers into signing up for its Prime service while complicating the cancellation process.
The FTC’s lawsuit accuses Amazon of engaging in deceptive practices over several years, suggesting the company utilized user-interface designs that were “manipulative, coercive or deceptive.” According to the agency, Amazon presented numerous options for customers to subscribe to Prime, while making it less transparent how to complete purchases without joining the membership. Regulators allege that the purchase confirmation button often failed to clearly indicate that consumers were agreeing to an automatic enrollment in Prime.
Additionally, the FTC contends that Amazon has made it unnecessarily complicated to cancel a Prime subscription, requiring customers to navigate multiple steps to end their membership. An FTC spokesperson declined to provide further comments on the ongoing case.
In response to these allegations, Amazon has denied any wrongdoing, asserting that its practices do not mislead consumers. A company spokesperson emphasized that Amazon and the involved executives have acted appropriately, stating, “We remain confident that the facts will show these executives acted properly and we always put customers first.”
Jury selection for the trial is set to commence soon, with opening arguments and potential witness testimony anticipated shortly thereafter. The proceedings are taking place in the U.S. District Court for the Western District of Washington and are expected to last up to four weeks. The final decision will rest in the hands of the jury.
Prime membership, which costs $14.99 monthly or $139 per year, offers users benefits such as free shipping, expedited delivery options, and access to streaming services like Prime Video.
In addition to the allegations concerning Prime, the FTC has also accused Amazon of engaging in illegal practices that could inflate prices and limit competition, in breach of antitrust laws. Amazon contests these accusations, maintaining that its business practices promote competition and benefit consumers.
