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Reading: FTC Trial Against Amazon Focuses on Deceptive Practices in Prime Subscription Sign-ups and Cancellations
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Finance

FTC Trial Against Amazon Focuses on Deceptive Practices in Prime Subscription Sign-ups and Cancellations

News Desk
Last updated: September 22, 2025 3:29 pm
News Desk
Published: September 22, 2025
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The Federal Trade Commission (FTC) is set to launch its highly anticipated trial against Amazon, focusing on the company’s cancellation practices related to its Prime subscription service. This trial begins this week, following a lawsuit initiated in 2023 during the Biden administration. The complaint contends that Amazon has misled millions of consumers into enrolling in its Prime service through manipulative design tactics, making it difficult for subscribers to cancel their memberships.

According to the FTC, Amazon employed so-called “dark patterns”—deceptive user interface designs—to entice users into automatically renewing their Prime subscriptions. The lawsuit alleges that the company intentionally created a complicated cancellation process that served to distract or deter customers from opting out of the service. The FTC described this cancellation method as “labyrinthine,” emphasizing the challenges faced by consumers in their efforts to terminate their subscriptions.

An Amazon representative defended the company’s practices, stating, “The bottom line is that neither Amazon nor the individual defendants did anything wrong. We remain confident that the facts will show these executives acted properly and we always put customers first.”

Amazon Prime, priced at $14.99 monthly or $139 annually, is a critical component of Amazon’s business portfolio, contributing significantly to its revenue. Initially launched to provide fast delivery services, Prime has evolved into a comprehensive package that includes streaming entertainment, grocery delivery, and exclusive member deals. While Amazon does not disclose its subscriber count, a third-party estimate from Consumer Intelligence Research Partners indicates that the company had around 197 million customers in March 2025.

The trial is expected to span approximately a month, with jury selection kicking off on Monday and opening arguments set for Tuesday. Should the jury find that Amazon violated the law, the presiding judge will determine the penalties stemming from the verdict.

The FTC has raised concerns that since 2016, Amazon implemented a drawn-out cancellation procedure referred to internally as “Iliad Flow,” named after Homer’s epic tale of the protracted Trojan War. The complaint suggests that aside from contacting customer service, the only way for consumers to cancel their subscriptions was to navigate through this convoluted Iliad process.

The FTC claims that customers confronted a “four-page, six-click, fifteen-option cancellation process,” rife with distractions such as warnings about losing benefits and promotional discounts. In sharp contrast, signing up for Prime was reportedly a straightforward operation requiring only two clicks, with details about recurring charges often relegated to fine print.

In response to the scrutiny, Amazon has made modifications to its cancellation framework. The company now provides a cancellation page that clearly outlines the options available to members contemplating ending or pausing their Prime membership.

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