Amazon FTC Lawsuit Over Prime Membership Sparks Controversy

Amazon is facing a major legal battle as the FTC vs Amazon 2025 trial begins in Seattle. The Amazon FTC lawsuit accuses the company of using “dark patterns” — confusing online designs — to trick millions of customers into joining its popular Prime program and making it difficult for them to cancel.

The case, filed in June 2023, claims Amazon misled users into paying for Prime without clear consent. Prime, launched in 2005, has more than 200 million members worldwide and costs $139 a year. It includes benefits like free shipping and video streaming. Regulators argue that Prime members shop more often and spend more, making the service a powerful money-maker for Amazon.

According to the FTC, Amazon used deceptive tactics, such as buttons that appeared to complete purchases but actually enrolled customers in Prime. Internally, employees reportedly called the problem an “unspoken cancer” because fixing it could reduce subscriptions. The agency also criticized the cancellation process, describing it as a “labyrinth” requiring users to click through four pages and 15 options. This part of the case is often referred to as the Amazon auto renewal lawsuit.

Amazon has denied all wrongdoing. The company says the Prime sign-up and cancellation steps are clear and simple, and that any customer mistakes are rare given the program’s popularity. In court filings, Amazon insisted it has “always been transparent about Prime’s terms.”

Still, the judge in the Amazon Prime subscription case recently ruled that Amazon and two executives violated consumer protection laws by collecting billing details before fully disclosing terms. If the jury sides with the FTC, those executives could be held personally responsible.

This Amazon Prime membership controversy is part of a broader FTC crackdown on deceptive subscription practices. Similar cases have recently been brought against Uber, Match, and Chegg.