Amazon faces US trial over alleged prime subscription practices

New Delhi: Amazon has gone to trial in a US federal court over allegations that it used deceptive tactics to enrol millions of customers in its Prime subscription service and made cancelling the membership overly complicated, as per the news report.

The Federal Trade Commission (FTC) filed the complaint in June 2023, claiming that Amazon employed so-called “dark patterns” in its checkout process. These designs allegedly encouraged customers to sign up for the $139-per-year Prime service without clear consent and created a complex, multi-step cancellation procedure. 

The internal system for cancellations, reportedly nicknamed “Iliad,” is said to involve multiple pages, clicks, and options, making it difficult for customers to unsubscribe.

The case, heard in Seattle by Judge John Chun, focuses on two primary allegations: that Amazon enrolled consumers without explicit consent through confusing checkout interfaces, and that the cancellation system was intentionally complex. 

The trial is expected to last around four weeks and will examine internal communications, company documents, and testimony from Amazon executives and expert witnesses.

The FTC is seeking financial penalties, restitution for affected consumers, and permanent injunctions requiring changes to Amazon’s subscription practices. Amazon’s defence argues that the agency is overextending legal interpretations and has noted improvements to its Prime enrolment and cancellation processes, claiming that some of the allegations reflect outdated practices.