Amazon’s impressive Prime subscriber numbers are now at the center of a federal trial, with the U.S. government alleging those figures were inflated by deceptive practices. The Federal Trade Commission is arguing that the company used manipulative design and a frustrating cancellation system to trick and trap millions of customers.
The FTC’s case, which went to trial this week, claims Amazon employed “dark patterns” in its checkout process. These design tactics allegedly made it difficult for customers to make a purchase without also signing up for a Prime membership. Prominent buttons and confusing language steered users toward enrollment, while the option to opt-out was intentionally obscured.
The lawsuit also casts a harsh light on Amazon’s cancellation procedure, which employees allegedly nicknamed “Iliad.” The FTC contends this was a deliberately complex process designed to be so arduous that many users would abandon their attempt to unsubscribe. This retention-by-frustration strategy is a key focus of the government’s case.
This legal showdown is a high-profile example of the U.S. government’s renewed effort to police the conduct of Big Tech companies. After years of explosive growth with little oversight, these firms are now facing a volley of lawsuits aimed at curbing their power and protecting consumers. The FTC is seeking both financial restitution and permanent changes to Amazon’s practices.
Amazon denies any wrongdoing, arguing that its subscription processes are transparent and lawful. The company’s defense is that the FTC is misinterpreting user interface design as deception and that any confusing elements have long been corrected. The outcome of the four-week trial could set a new legal standard for how online services must handle subscriptions.