The Prime Predicament: Did Amazon Illegally Trap Its Customers?

A Seattle courtroom has become the battleground for a major dispute over consumer rights in the digital age. A federal trial is now underway to address allegations from the Federal Trade Commission that Amazon used an illegal combination of deceptive sign-up tactics and a frustrating cancellation process to trap millions of customers in its Prime subscription service.
The FTC’s complaint, originally filed in June 2023, asserts that Amazon’s business practices involved a systematic effort to mislead. The government claims the company’s checkout pages were intentionally designed to cause confusion, leading customers to believe they had to sign up for Prime to complete their purchase, or to accidentally enroll with a single mistaken click.
A central piece of the FTC’s case is the company’s internal codename for its cancellation procedure: “Iliad.” The government will argue that this name is an admission of the system’s true nature—a long, difficult journey designed to wear down the customer’s resolve. This “labyrinthine” process is being presented as a clear violation of consumer protection laws.
This legal confrontation is part of a wave of recent government actions aimed at reining in the power of major U.S. technology firms. The FTC, under new leadership, has adopted a more aggressive enforcement strategy, and this trial against Amazon is one of its most high-profile cases to date. The agency is seeking both financial penalties and a permanent injunction to reform Amazon’s subscription model.
Amazon is defending its practices, stating that the company has always prioritized customer satisfaction. Its lawyers argue that the FTC is unfairly targeting a successful service and that the claims are based on old interface designs that have since been updated. The trial will delve into internal Amazon documents to determine the extent of the company’s knowledge about these alleged issues.