Amazon Prime trial begins this week: What to expect
AmazonAmazon(US:AMZN) Yahoo Finance·2025-09-22 13:01

Core Viewpoint - The ongoing FTC trial against Amazon could significantly impact how the company operates its Prime subscription service, which has over 200 million global subscribers and generates more than $40 billion in annual revenue from subscriptions alone [1][2]. Group 1: Amazon Prime Subscription - Amazon Prime is a crucial part of the company's business model, with members reportedly spending about twice as much as non-members, highlighting its importance to Amazon's retail operations [2]. - The FTC alleges that Amazon misled millions into signing up for Prime and created a frustrating cancellation process, which the company internally referred to as the "Iliad" [3][4]. Group 2: Legal Allegations and Company Response - The FTC claims that Amazon's cancellation process was designed to deter customers from unsubscribing by bombarding them with offers and links [4]. - Amazon has denied these allegations, asserting that Prime is valuable and ranks highly in customer satisfaction and renewal rates [5]. Group 3: Broader Implications and Executive Accountability - The case raises questions about whether Amazon's Prime business is based on genuine customer loyalty or manipulative design practices known as "dark patterns" [6]. - If found guilty, Amazon executives, including Neil Lindsay and Jamil Ghani, could face personal liability for their roles in the Prime subscription business [7].