Amazon’s popular Prime service is at the center of a major federal lawsuit that has now advanced to a jury trial. The U.S. government accuses the retail giant of a calculated campaign of deception, using confusing website designs to trick users into subscribing and then erecting a wall of complexity to keep them from leaving.
The Federal Trade Commission, acting as the government’s prosecutor, alleges that Amazon was aware that its checkout process led to a high number of unintentional Prime sign-ups. Despite this knowledge, the company allegedly resisted making changes because the unwanted subscriptions were a significant source of revenue. The complaint points to the use of “dark patterns” that exploited common user behaviors.
A key piece of evidence for the FTC is the internal nickname for the Prime cancellation process: “Iliad.” The commission argues this name is a telling admission that Amazon knew the process was long and arduous. This system forced users through what the FTC calls a “labyrinth” of clicks and pages, a clear strategy to discourage cancellations.
Amazon is contesting the lawsuit vigorously. Its defense team argues that the FTC is applying an overly broad interpretation of consumer protection law and that Prime’s features and terms have always been clearly communicated. The company also highlights recent updates to its interface as evidence of its commitment to transparency, suggesting the lawsuit is unnecessary.
The trial is expected to offer a rare look inside Amazon’s decision-making processes, with internal corporate documents and executive testimony taking center stage. If the jury finds in favor of the FTC, Amazon could face hundreds of millions of dollars in penalties and be subjected to strict, court-enforced rules on how it manages its subscription services in the future.