The Federal Trade Commission is taking on Amazon in court, alleging the company perfected a “roach motel” business model for its Prime service: customers could get in easily, but getting out was another story. A trial is now underway to determine if Amazon used illegal, deceptive tactics to both enroll and retain its Prime members.
The lawsuit outlines a two-part strategy of deception. First, the FTC claims Amazon used “dark patterns” during online checkout to bamboozle customers into signing up. Shoppers were allegedly confronted with a confusing interface where joining Prime was the path of least resistance, while declining was intentionally made difficult and non-intuitive, leading to countless accidental enrollments.
The second part of the FTC’s case is the now-infamous cancellation process codenamed “Iliad.” The government alleges this was a deliberately complex system, requiring users to persist through a multi-page, multi-click journey filled with prompts to reconsider. The FTC argues this was a calculated effort to reduce subscriber churn by simply making the exit process too frustrating to complete.
This trial is a landmark event in the ongoing efforts by U.S. regulators to curb the immense power of Big Tech. It reflects a growing concern in Washington that these companies have used their design expertise not to improve user experience, but to manipulate it for financial gain. The FTC is seeking not just fines but a court order to reform these practices permanently.
Amazon maintains its innocence, arguing that its features have always been customer-centric and that it has already made its subscription options more transparent. The company’s lawyers will argue the FTC’s case is built on old information. The Seattle jury trial will rely heavily on internal Amazon emails and documents to uncover the truth behind the design of the Prime subscription system.