A federal trial is now underway to investigate the hidden costs of Amazon’s Prime service—not the subscription fee, but the alleged cost of deception. The U.S. government is suing the company, claiming it used manipulative tactics to enroll and retain millions of subscribers against their will.
The Federal Trade Commission’s case rests on the accusation that Amazon used “dark patterns” to trick users. The complaint details a checkout process where the choice to subscribe to Prime was made easy and prominent, while the option to proceed without it was intentionally obscured, leading to accidental sign-ups.
The lawsuit also highlights the infamous “Iliad” cancellation process. The FTC describes this as a deliberately convoluted system, a “labyrinth” designed to be so frustrating that users would give up trying to cancel. This, the government contends, was a core part of Amazon’s strategy to reduce churn.
This legal showdown is a high-profile example of the U.S. government’s renewed effort to police the conduct of Big Tech companies. The trial’s outcome could set a new legal standard for how online services must handle subscriptions, with potential ripple effects across the industry.
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 the claims are based on old information. The jury will now hear the evidence and decide the case.