Amazon defends its program, saying its success if built on value
- Federal court in Seattle to decide whether Amazon tricked customers into Prime memberships
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FTC says the company used dark patterns to make it hard to cancel subscriptions
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Amazon denies wrongdoing, calling Prime a popular service built on value
Trial begins this week
A trial opening in federal court in Seattle this week will test the Federal Trade Commissions claim that Amazon misled millions of customers into signing up for its Prime program and made cancellation needlessly difficult. Jury selection begins Monday, with opening arguments set for Tuesday. The trial is expected to last about a month.
The FTC, which sued Amazon in 2023, says the company knew for years that it was charging consumers without clear consent. The agency argues Amazon designed its cancellation process internally called Iliad to confuse customers with repeated offers and obstacles. Rather than simply allowing consumers to cancel, each page bombards consumers with links, offers and other information, the FTC said.
Amazon defends Prime program
Amazon rejects the allegations, saying Prime succeeds because customers see it as a good deal. The way Amazon drives Prime subscribers is by making the service useful and valuable, company spokesman Mark Blafkin said. Prime, which costs $139 a year or $14.99 a month, offers fast shipping, streaming video, grocery discounts and other perks. Amazon argues that reminders and offers during cancellation are standard industry practice.
Executives under scrutiny
Judge John H. Chun ruled that two senior Amazon executives, Neil Lindsay and Jamil Ghani, could be held personally liable if jurors find violations of consumer protection law. The judge also criticized Amazon for improperly withholding documents, calling the move tantamount to bad faith. Amazon maintains its leaders acted properly and always put customers first.
Stakes for Amazons business
Prime, launched nearly 20 years ago, now boasts more than 200 million U.S. members and brought in more than $44 billion last year. Analysts say Prime members spend about twice as much as non-members, making the program critical to Amazons business. While the FTC has not asked for specific damages, a loss could tarnish Amazons consumer-friendly image and invite new limits on how it markets subscriptions.
Posted: 2025-09-23 17:48:17