Jury to Weigh Claims That Amazon Misled Shoppers Into Prime Memberships

Federal Trial to Decide If Amazon Misled Millions Into Prime

Seattle Court at the Center of Prime Dispute

This week, a federal trial in Seattle will test whether Amazon’s Prime success comes from its value or from deceptive practices. The case focuses on whether millions of shoppers joined Prime because they wanted faster shipping and perks, or because they were pushed into it unknowingly.

FTC Accuses Amazon of Deceptive Tactics

The Federal Trade Commission (FTC), which filed its lawsuit in 2023, argues that Amazon tricked customers into subscribing and then made it extremely difficult to cancel. In recent filings, the agency accused the company of knowingly charging consumers without proper consent.

FTC spokesperson Joe Simonson said the agency’s mission is to protect Americans harmed by such practices, adding they are eager to prove their case in court.

Amazon Pushes Back on Claims

Amazon strongly denies the accusations, saying Prime’s growth comes from the program’s usefulness. “Prime works because it delivers value,” spokesman Mark Blafkin said. The company highlighted high renewal rates and customer satisfaction as proof that shoppers are not being forced into the service.

Prime, which costs $139 a year or $14.99 a month, offers free shipping, Prime Video, Whole Foods discounts, and more. Since its 2005 launch, it has become what the FTC calls “the largest subscription service in the world.”

Executives Under Scrutiny

Judge John H. Chun ruled that senior executives Neil Lindsay and Jamil Ghani could be held personally liable if the jury finds Amazon broke the law. He also criticized Amazon for withholding tens of thousands of documents, describing the move as “bad faith.”

Amazon, however, insists its leaders acted appropriately and always prioritized customers’ interests.

The “Iliad” Cancellation Process

At the core of the FTC’s case is whether Amazon’s cancellation flow — internally nicknamed “Iliad” — unfairly pressured consumers to stay. Instead of a quick opt-out, customers had to navigate multiple screens filled with offers and distractions.

The FTC says this design reflects “dark patterns” meant to confuse. Amazon counters that showing offers before cancellation is a common industry practice and that consumers are accustomed to such flows.

Stakes for Amazon’s Business Model

Prime is essential to Amazon’s retail strategy. Analysts estimate Prime members spend about twice as much as non-members, making the program central to the company’s $44 billion subscription revenue in 2023.

Consumer researcher Michael Levin emphasized, “Prime members are Amazon’s most valuable customers.”

What Comes Next

The trial is expected to last about a month, with jury selection underway and opening arguments set to begin this week. If the jury rules against Amazon, the judge will determine possible penalties.

While this case is narrower than the FTC’s antitrust battle with the company, its outcome could reshape how Amazon markets one of its most profitable and influential services.