FTC Takes Amazon to Court Over Prime Sign-Ups and Cancellation Practices

Seattle — Amazon is now facing a high-stakes civil trial brought by the U.S. Federal Trade Commission (FTC), which has accused the e-commerce giant of misleading millions of customers in its Prime membership program. At the heart of the case are claims that Amazon enrolled users without clear consent and made it excessively difficult for people to cancel their subscriptions.

What the FTC Alleges

The FTC argues Amazon violated the Restore Online Shoppers’ Confidence Act (ROSCA) by collecting billing information from consumers before fully disclosing the terms of Prime membership.
The lawsuit claims that many customers were enrolled in Prime inadvertently—especially through checkout options that did not make it obvious that selecting a certain button or option meant joining Prime.
Once enrolled, subscribers allegedly encountered a confusing, multi-step cancellation process. Internal company documents are said to show that Amazon resisted simplifying the cancellation workflow because it worried simplifying it would cause members to drop off.
The complaint uses the term “dark patterns” to describe design and user-interface features that allegedly nudged or tricked customers toward keeping Prime membership or accidentally enrolling.

Legal Developments & Court Rulings

A federal judge, John Chun, has already ruled in favor of the FTC on some points. One important ruling is that Amazon did break ROSCA by obtaining customers’ payment information before giving them full disclosure of the subscription terms.
Two senior Amazon executives have been kept in the case as potential individuals liable, meaning they could face penalties if the court finds wrongdoing.
Among the contested legal questions for the jury to decide: whether Amazon’s disclosures were “clear and conspicuous,” and whether the cancellation process qualifies under the law as “simple.”

Amazon’s Defense

Amazon denies the allegations. The company insists that its Prime membership terms are clearly disclosed to customers, and that it offers multiple ways to cancel membership (online, via customer service, etc.).
According to Amazon, misunderstandings happen, but these do not amount to violations of the law. The company also claims that only a small percentage of customers have complained or were confused, and it emphasizes the benefits that Prime provides—including fast shipping, streaming perks, discounts, and more.

Why This Case Matters

The trial represents a broader push by regulators to crack down on subscription practices seen as unfair or deceptive. Subscription services are increasingly under scrutiny for “opt-out” or “dark pattern” tactics.
It also has implications for how user interface design and consumer consent are regulated in an era where many purchases, trials, and subscriptions are conducted online.
If Amazon loses, it could face hundreds of millions in damages, changes in how it handles Prime enrollments, and perhaps stricter oversight or regulatory requirements on how membership terms are presented to users.

This trial may reshape how digital subscription services operate in the U.S.—how clearly they must disclose their terms, how easy it must be to cancel, and how much influence design decisions have in enforcing consumer rights.