(RTTNews) - Amazon.com Inc. (AMZN) is being sued by the Federal Trade Commission in a Seattle courtroom for allegedly deceiving customers into becoming Prime members and making it difficult for them to cancel.
The $139-per-year service, which has more than 200 million members worldwide, may be significantly impacted by the jury trial, which is anticipated to last roughly a month.
According to the FTC, Amazon pushed customers into Prime without getting their express consent by using "dark patterns," or deceptive design techniques.
While the opt-out was hidden in a smaller link, regulators point to a large yellow button that offered "FREE Two-Day Shipping" and enrolled users in Prime. The agency claims that canceling necessitated navigating a "four-page, six-click, fifteen-option" maze, which it refers to internally as the "Iliad Flow."
Amazon rejects the allegations, stating that only a small minority are impacted by any confusion and that customers join Prime for its benefits rather than its design tricks. Three executives named in the lawsuit are also being defended by the company.
The case implies a larger FTC monopoly trial against Amazon in 2027, indicating rising government pressure on one of the most major businesses in the world.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
