FTC Sues Amazon Over Alleged Misleading Prime Sign-Ups, Ignored Employee Warnings
The U.S. Federal Trade Commission (FTC) has filed a high-profile lawsuit against Amazon, alleging that the e-commerce giant enrolled millions of users into its Prime subscription service without their explicit consent and ignored internal employee warnings about the practice. Court proceedings are scheduled to begin this week in Seattle.
According to the FTC, Amazon intentionally designed its Prime sign-up and cancellation process to make it easier for customers to join but harder to leave. Employees reportedly warned the company about the problematic system, even describing it as an “unspoken cancer” within Amazon, but their concerns were allegedly ignored.
“Millions of consumers accidentally enrolled in Prime without knowledge or consent, but Amazon refused to fix this known problem, described internally by employees as an ‘unspoken cancer’ because clarity adjustments would lead to a drop in subscribers,” the FTC said in a filing earlier this month.
The lawsuit highlights Amazon’s use of so-called “dark patterns,” design choices intended to mislead or confuse users. Important subscription information was reportedly buried in fine print or on secondary pages, while visually prominent buttons encouraged users to sign up. Once enrolled, customers were confronted with a complicated, multi-step cancellation process internally nicknamed “Iliad,” echoing the complexity of Homer’s epic.
The FTC alleges that these design choices allowed Amazon to profit from unintentional subscriptions, with internal records showing the company was aware of the non-consensual enrollments but chose not to act. “For years, Amazon has knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service,” the complaint states.
Amazon has rejected the allegations, stating that it has recently updated its sign-up and cancellation systems and asserting that current laws, such as the Restore Online Shoppers’ Confidence Act (ROSCA), do not explicitly prohibit its design practices.
The trial is expected to last several weeks, with the court reviewing internal emails, employee testimony, and senior management statements as evidence. The outcome could have major implications for how online subscription services are designed and regulated, particularly regarding consumer consent and transparency.
