FTC Trials Amazon Over Alleged Prime Subscription Deception in Major Seattle Case

Amazon has been accused by the Federal Trade Commission (FTC) of deceiving customers into unwanted Prime subscriptions and making cancellation difficult, leading to a high-profile trial in Seattle federal court. The FTC alleges Amazon used complex and opaque sign-up and cancellation flows, such as the "Iliad flow," which required multiple steps to cancel and caused many users to abandon the process. Amazon denies wrongdoing, arguing that the terms were clear and cancellation was straightforward. The lawsuit, filed under the Biden administration, culminated in a $2.5 billion settlement under the Trump administration, with $1.5 billion allocated to affected Prime subscribers and commitments to improve subscription disclosures and cancellation processes. This settlement, while marking a significant regulatory achievement, has been met with mixed reactions, including critiques about the challenges in existing subscription laws and concerns over regulatory approaches toward business executives. The case highlights ongoing tensions between regulators and big tech over consumer protection and business practices.