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Amazon Faces Jury Trial Over FTC Claims It Tricked Prime Users and Hindered Cancellation

A pretrial ruling applying the online shoppers’ law gives regulators an early edge as the monthlong Seattle case tests whether Amazon’s design choices violated consumer protection rules and could expose executives to personal liability.

Overview

  • Jury selection began Monday with opening arguments Tuesday in Seattle, where nine jurors will hear a roughly monthlong case over Amazon’s Prime enrollment and cancellation practices.
  • The FTC alleges Amazon used dark patterns to enroll users without clear consent and deployed an internal, multi-page “Iliad” flow that made canceling harder than signing up.
  • Judge John Chun ruled that key provisions of the Restore Online Shoppers’ Confidence Act apply and found Amazon collected billing information before disclosing Prime’s terms.
  • Two senior executives, Neil Lindsay and Jamil Ghani, could be held personally liable if the jury finds violations, while Amazon denies wrongdoing and says it has improved its processes.
  • Regulators cite an estimate that about 40 million consumers were enrolled without consent and are seeking damages, civil penalties that can reach $53,000 per violation, and injunctions to change Amazon’s designs.