Amazon’s FTC Trial Over Alleged ‘Dark Patterns’ Of Prime Subscription Cancellation Practices Kicks Off
The Federal Trade Commission (FTC) has initiated its legal battle against Amazon.com Inc. AMZN over the company’s Prime subscription cancellation practices.
FTC Trial Targets Amazon Over Prime ‘Dark Pattern’ Practices
The FTC trial against Amazon began on Monday, with the company’s Prime subscription practices under scrutiny, CNN reported. The lawsuit, filed in 2023, alleges that Amazon used manipulative user interface designs, or ‘dark patterns,’ to mislead consumers into enrolling in Prime and create obstacles for them when trying to cancel.
Check out the current price of AMZN stock here.
The trial is projected to run for roughly a month, beginning with jury selection on Monday and opening arguments set for Tuesday. Should Amazon be found liable, the judge will decide the damages the company must pay.
The FTC claims that Amazon used a complicated cancellation system, known internally as “Iliad Flow,” with multiple steps intended to discourage customers from canceling. The agency also alleges that Amazon made joining Prime simple while frequently hiding recurring billing details in fine print.
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Prime’s $7.9 Billion Sales Surge In July
Amazon’s Prime service, which costs $14.99 per month or $139 annually, is a significant revenue generator for the company. It offers a range of services, including fast delivery, streaming entertainment, and grocery delivery, and is estimated to have 197 million U.S. subscribers as of March 2025.
Additionally, in the same month, Amazon’s stock experienced a Golden Cross, a bullish technical signal. The outcome of the FTC trial could have a significant impact on Amazon’s future, given the importance of the Prime service to the company’s financial performance.
Benzinga’s Edge Rankings place Amazon in the 63rd percentile for quality and the 92nd percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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