Amazon Faces US Trial Over Alleged Prime Subscription Tricks
ByAinvest
Monday, Sep 22, 2025 4:12 am ET1min read
AMZN--
The FTC's complaint alleges that Amazon's Prime subscription and cancellation practices are in violation of ROSCA. The complaint states that Amazon collects customers' billing information before disclosing the material terms of Prime, which violates the law. The FTC also contends that Amazon uses customers' stored information to charge them for Prime, whether the enrollment is consensual or not [1].
The case, Federal Trade Commission v. Amazon.com Inc., is part of a bipartisan effort to rein in the power of US tech giants. The trial is set for September 22, 2025, in the Washington Western District Court [1].
Amazon has argued that it obtains consent to use a customer's billing information at the same time it discloses Prime's terms. However, US District Judge John Chun ruled that "no reasonable jury could find in favor of Amazon" when presented with evidence showing the order in which billing information is collected in the checkout flow [1].
The FTC has named specific Amazon executives, including Neil Lindsay, Russell Grandinetti, and Jamil Ghani, who had authority to control Prime enrollment and cancellation flows. The FTC contends that these executives had actual knowledge of, or were recklessly indifferent to, the alleged issues with Amazon's flows [1].
The trial will determine whether Amazon is liable for violations of the FTC Act and ROSCA. If found liable, Amazon could face penalties, monetary relief, and injunctions requiring it to change its practices. Amazon has expressed confidence that it will prevail at trial, stating that neither Amazon nor the individual defendants did anything wrong and that the company always puts customers first [1].
The case highlights the ongoing scrutiny of tech giants' business practices and the importance of consumer protection laws in ensuring transparency and fairness in online transactions.
Amazon is set to face trial over allegations it used "dark patterns" to enroll millions of customers in its Prime subscription service without clear consent and created a complex cancellation system. The Federal Trade Commission's complaint accuses the company of violating consumer protection laws, including ROSCA, which prohibits charging consumers for internet services without clear disclosure of terms and obtaining express consent. The FTC seeks penalties, monetary relief, and injunctions to require Amazon to change its practices. The case is part of a bipartisan effort to rein in the power of US tech giants.
Amazon is set to face trial over allegations that it used "dark patterns" to enroll millions of customers in its Prime subscription service without clear consent and created a complex cancellation system. The Federal Trade Commission (FTC) has accused the company of violating consumer protection laws, including the Restore Online Shoppers’ Confidence Act (ROSCA), which prohibits charging consumers for internet services without clear disclosure of terms and obtaining express consent [1].The FTC's complaint alleges that Amazon's Prime subscription and cancellation practices are in violation of ROSCA. The complaint states that Amazon collects customers' billing information before disclosing the material terms of Prime, which violates the law. The FTC also contends that Amazon uses customers' stored information to charge them for Prime, whether the enrollment is consensual or not [1].
The case, Federal Trade Commission v. Amazon.com Inc., is part of a bipartisan effort to rein in the power of US tech giants. The trial is set for September 22, 2025, in the Washington Western District Court [1].
Amazon has argued that it obtains consent to use a customer's billing information at the same time it discloses Prime's terms. However, US District Judge John Chun ruled that "no reasonable jury could find in favor of Amazon" when presented with evidence showing the order in which billing information is collected in the checkout flow [1].
The FTC has named specific Amazon executives, including Neil Lindsay, Russell Grandinetti, and Jamil Ghani, who had authority to control Prime enrollment and cancellation flows. The FTC contends that these executives had actual knowledge of, or were recklessly indifferent to, the alleged issues with Amazon's flows [1].
The trial will determine whether Amazon is liable for violations of the FTC Act and ROSCA. If found liable, Amazon could face penalties, monetary relief, and injunctions requiring it to change its practices. Amazon has expressed confidence that it will prevail at trial, stating that neither Amazon nor the individual defendants did anything wrong and that the company always puts customers first [1].
The case highlights the ongoing scrutiny of tech giants' business practices and the importance of consumer protection laws in ensuring transparency and fairness in online transactions.

Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue

Comments
No comments yet