Amazon Faces Judge’s Ruling on Prime Subscription Practices Ahead of Trial

WASHINGTON, Sept. 18 (Reuters) – Amazon has violated consumer protection law by collecting billing information from Prime subscribers before revealing service terms, according to a ruling by U.S. District Judge John Chun on Wednesday. This decision represents a significant win for the U.S. Federal Trade Commission (FTC) amid ongoing allegations of deceptive practices surrounding Amazon’s Prime subscriptions.

The FTC contends that Amazon signed up millions of customers without their proper consent and made it difficult for them to cancel. The agency claims these practices contravened the Restore Online Shoppers’ Confidence Act (ROSCA). ‘Today’s decision affirms that Amazon defrauded American consumers by failing to disclose all terms prior to collecting payment information,’ stated Chris Mufarrige, head of the FTC’s bureau of consumer protection.

The court’s ruling not only strengthens the FTC’s case but also opens the door for two Amazon executives to be held individually accountable for any proven violations during the upcoming trial, which is set to begin on September 22, 2025. In contrast, Amazon insists it has acted lawfully and maintains that both the company and the executives did nothing wrong.

The FTC’s lawsuit highlights the alleged use of ‘dark patterns’ — designs aimed at manipulating consumer behavior into subscribing to Prime memberships. It argues that Amazon’s tactics have harmed consumers by making the cancellation process convoluted, which the company dubbed ‘Iliad’ due to its complexity.

If the FTC wins, Amazon may be required to overhaul its Prime sign-up and cancellation processes, ushering in a new era of transparency for digital subscription services. Additionally, the outcome could set critical legal precedents impacting how other online platforms manage customer consent and subscriptions.