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Amazon Faces Jury Trial Over FTC Claims of Deceptive Prime Sign-Ups and Cancellations

A recent ruling finding a ROSCA violation intensifies scrutiny of Amazon's Prime design choices.

Overview

  • Jury selection begins Monday in Seattle with opening statements expected Tuesday for a trial slated to run about four weeks.
  • U.S. District Judge John H. Chun already found Amazon violated ROSCA by taking payment details before disclosing material terms, and said two Prime executives could be held personally liable if violations are proven.
  • The FTC alleges Amazon steered users into Prime through dark patterns and deterred cancellations with the multi-step “Iliad” flow described as four pages, six clicks and 15 options.
  • Regulators seek monetary relief, penalties and permanent injunctions that could force changes to Amazon’s subscription practices.
  • Amazon denies wrongdoing, says Prime is clearly explained and easy to cancel, and points to customer satisfaction and past updates to its processes.