Amazon is set to face a court hearing in Seattle as federal regulators accuse the e-commerce giant of misleading customers into signing up for its Prime membership and complicating the cancellation process.
The lawsuit, initiated by the Federal Trade Commission (FTC), alleges that Amazon employed user-interface designs deemed manipulative and deceptive, leading to consumers inadvertently renewing Prime subscriptions. In particular, the FTC claims shoppers were bombarded with subscription options while the choice to purchase without subscribing was obscured. The process to cancel Prime was reportedly cumbersome, requiring customers to navigate several obstacles.
Amazon, however, stands firm in its defense, refuting allegations of consumer deception. A company spokesperson expressed confidence that the evidence will demonstrate that Amazon executives acted appropriately, emphasizing that customer interests remain a priority.
The court proceedings at the U.S. District Court for the Western District of Washington will begin with jury selection on Monday and are expected to last up to four weeks. The trial aims to establish if there was any wrongdoing on Amazon’s part regarding membership practices.
Beyond this case, the FTC is separately accusing Amazon of engaging in anti-competitive practices by allegedly manipulating prices and hindering competition, violations that the company also denies.
Amazon Prime, known for offering benefits such as free shipping, faster delivery, and access to Prime Video for $14.99 monthly or $139 annually, remains a significant revenue stream for the company. As the trial unfolds, implications for consumer rights and business practices in digital marketplaces hang in the balance, marking a pivotal moment for e-commerce regulation.