A federal court is now hearing claims that Amazon built a digital fortress around its Prime subscription service, making it nearly impossible for users to escape. The trial, initiated by the Federal Trade Commission, focuses on allegations that Amazon not only tricked users into signing up but trapped them with a cancellation process so difficult it was internally named “Iliad.”
The FTC argues that the “Iliad” codename is a smoking gun, proving Amazon’s intent to create a grueling experience for customers wishing to unsubscribe. The process allegedly involved navigating a confusing maze of pages with multiple attempts to dissuade the user, a far cry from the simple “one-click” a customer might have used to sign up. This intentional friction is a central pillar of the government’s case.
Beyond the cancellation ordeal, the lawsuit accuses Amazon of deceptive enrollment tactics. The company is alleged to have used “dark patterns” at checkout, where the design nudged shoppers toward Prime membership. The FTC contends that the path to completing a purchase without a subscription was deliberately obscured, leading to widespread nonconsensual enrollments that boosted Amazon’s bottom line.
The trial is a significant moment in the ongoing regulatory scrutiny of Big Tech. It highlights a growing focus not just on anti-competitive behavior but also on how companies design their digital interfaces to influence consumer choice. A victory for the FTC could establish new legal standards for transparency in online subscription models.
Amazon has pushed back, describing the FTC’s lawsuit as misguided. The company insists that it has always made the terms of Prime membership clear and that the cancellation process has been simplified over time. The jury will be tasked with reviewing internal Amazon documents and testimony to determine if the company’s actions constituted illegal deception.