Amazon Jury Trial Over FTC’s Prime Cancellation Claims Opens

Core Viewpoint - Amazon.com Inc. is facing a court trial initiated by the Federal Trade Commission (FTC) over allegations of misleading customers into signing up for the Prime subscription service and complicating the cancellation process, which could result in billions of dollars in penalties and refunds [1][2]. Group 1: Allegations and Legal Proceedings - The FTC claims that Amazon enrolled over 35 million individuals in Prime without their consent, emphasizing that the company's focus is on membership numbers regardless of customer intent [2]. - The trial, which began this week in Seattle, involves a nine-person jury that will determine if Amazon violated consumer protection laws [1]. - The civil enforcement case was initiated by the FTC two years ago during the Biden administration, highlighting a significant legal confrontation between the agency and Amazon [4]. Group 2: Amazon's Defense - Amazon's legal representation argues that the FTC's claims are based on minor formatting issues, asserting that the company has complied with legal obligations [2]. - Amazon's defense emphasizes that the Prime program is not deceptive, stating that no one is automatically enrolled in Prime [3]. - The company is accused of making the cancellation process excessively complicated, with internal references to the process as "the Odyssey," indicating its arduous nature [5]. Group 3: Executive Involvement - Three Amazon executives, including Senior Vice Presidents Neil Lindsay and Russell Grandinetti, and Vice President Jamil Ghani, are implicated in the alleged orchestration of misleading practices regarding Prime sign-ups [6]. - These executives reportedly ignored internal requests to modify the sign-up process to avoid misleading customers about the terms and conditions of the service [6].