Workflow
Did Amazon trick people into joining Prime?
AmazonAmazon(US:AMZN) Yahoo Financeยท2025-09-23 18:52

Core Viewpoint - The Federal Trade Commission (FTC) has initiated a case against Amazon, alleging deceptive practices in the sign-up and cancellation processes for Amazon Prime subscriptions, impacting nearly 40 million customers [2][4]. Group 1: Allegations and Legal Actions - The FTC claims that Amazon tricked approximately 40 million customers into subscribing to Prime and made it difficult to cancel, violating consumer protection laws [2]. - The agency is seeking refunds for consumers, civil penalties, and a mandate for Amazon to simplify the cancellation process for Prime subscriptions [2]. - The lawsuit was originally filed two years ago and is distinct from a broader antitrust trial against Amazon [4]. Group 2: Amazon's Response - Amazon has denied all allegations, asserting that both the company and its executives acted properly and prioritized customer interests [3]. Group 3: Financial Impact and Membership Data - Amazon's Prime membership is estimated to exceed 200 million subscribers, generating $4 billion in revenue from subscriptions last year [5]. - The current cost of a Prime subscription is $14.99 per month or $139 annually [5]. Group 4: Cancellation Process - The FTC describes Amazon's cancellation process as "labyrinthine," requiring customers to navigate a complex series of steps to cancel their Prime memberships [6]. - The cancellation process, referred to internally as "Iliad Flow," involves a four-page, six-click, fifteen-option procedure, with warnings about missing deals to deter cancellations [6].