Amazon faces off against FTC over 'deceptive' Prime program

Core Viewpoint - The Federal Trade Commission (FTC) is pursuing a lawsuit against Amazon, alleging that the company misled customers into subscribing to its Prime membership and made it difficult for them to cancel their subscriptions [1][4]. Group 1: Lawsuit Details - The lawsuit was filed in June 2023 and claims that Amazon deceived tens of millions of customers regarding Prime subscriptions [1]. - The trial is taking place in Seattle, with jury selection having begun and expected to last about a month [2]. - Amazon has denied any wrongdoing and maintains that its sign-up and cancellation processes are clear [6]. Group 2: Amazon Prime Program - Launched in 2005, Amazon Prime has over 200 million members globally and generates billions in revenue, with an annual membership fee of $139 [3]. - Prime members tend to spend more and shop more frequently compared to non-members [3]. - The FTC argues that Amazon's practices violate competition and consumer protection laws, citing misleading buttons that do not clearly indicate subscription agreements [4]. Group 3: Customer Experience Issues - The FTC claims that many consumers unintentionally enrolled in Prime without their knowledge, describing the issue as an "unspoken cancer" within the company [5]. - The cancellation process is described as overly complicated, requiring navigation through multiple webpages and options, which the FTC refers to as a "labyrinthian mechanism" [6]. - Amazon contends that occasional customer misunderstandings do not equate to legal violations, asserting that frustrations are expected for a popular program like Prime [6].