FTC sues Amazon over deceptive Prime enrollments, cancellations

Amazon is facing a federal trial initiated by the U.S. Federal Trade Commission (FTC) over allegations that the company deceptively enrolled tens of millions of consumers into its Prime membership without their clear consent and made cancellation procedures excessively complicated. The FTC's lawsuit accuses Amazon of employing manipulative user interface designs known as "dark patterns," including a convoluted cancellation process internally named the "Iliad Flow," which forces customers through multiple steps and distractions to deter them from canceling. While enrollment could be completed quickly, the cancellation required navigating a complex four-page, six-click, fifteen-option process, according to the FTC. Amazon disputes these claims, asserting that its practices are transparent and that customers understand what they are signing up for, emphasizing their commitment to customer trust. The trial, which began in Seattle, could significantly impact Amazon's subscription practices and potentially lead to fines, customer refunds, and stricter rules around subscription marketing and cancellations. This case highlights broader regulatory efforts to protect consumers against deceptive subscription tactics and may reshape how major companies manage online enrollments and cancellations.