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Amazon Faces Landmark FTC Trial Over Prime Subscription Practices

By Michelle Ndaga

A landmark trial pitting Amazon against the U.S. Federal Trade Commission (FTC) kicks off today, September 22, 2025, in the U.S. District Court for the Western District of Washington.

The case centers on allegations that the e-commerce giant used deceptive design tactics, known as “dark patterns,” to lure customers into Prime subscriptions and make cancellations unnecessarily difficult.

The FTC’s lawsuit, first filed in June 2023, accuses Amazon of violating the Restore Online Shoppers’ Confidence Act (ROSCA) by collecting payment details before fully disclosing key terms of its Prime membership.

Regulators say the company deliberately designed its sign-up and cancellation flow internally referred to as “Project Iliad” to confuse or discourage users from ending their subscriptions.

In a key pre-trial ruling last week, Judge John H. Chun agreed with the FTC that Amazon’s enrollment process breached federal law, giving the regulator an early win ahead of trial.

The judge also ruled that two Amazon executives could be held personally liable if the FTC proves its case.

Amazon has denied wrongdoing, arguing that its sign-up and cancellation processes are clear and customer friendly. The company maintains that Prime’s popularity with over 200 million members worldwide reflects consumer satisfaction rather than coercion.

The outcome of this case could have sweeping implications for how online retailers present subscription offers and manage cancellations.

A ruling against Amazon might force it to redesign its checkout and cancellation systems and potentially pay penalties or offer restitution to affected consumers.

The trial is expected to run several weeks, with testimony from former employees, user-experience experts, and regulators likely to shed light on Amazon’s internal decision-making.