A federal judge has ruled that Amazon violated U.S. consumer protection laws by making it unnecessarily difficult for users to cancel Prime memberships, in a decision that sets the stage for a major trial over the retail giant’s subscription practices.
The ruling, issued this week by U.S. District Judge John Chun in Seattle, comes ahead of a scheduled trial in the Federal Trade Commission’s lawsuit against Amazon. The case centers on allegations that the company used deceptive design tactics often referred to as “dark patterns” to steer consumers into Prime subscriptions and obstruct their efforts to cancel.
Judge Chun found that the FTC presented sufficient evidence to support claims that Amazon’s cancellation process was intentionally confusing and in violation of the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law designed to protect consumers from misleading online sales practices.
According to the FTC, Amazon required users to click through multiple screens, answer irrelevant questions, and navigate unclear prompts in order to cancel Prime steps that regulators say were engineered to cause friction and increase customer retention.
“The court finds there is enough evidence for a jury to conclude that Amazon’s practices were not only misleading but also violated federal law protecting online shoppers,” the judge wrote.
The Prime subscription service, which costs $139 per year, is a cornerstone of Amazon’s business model, offering fast shipping, streaming video, and exclusive deals to more than 200 million members worldwide. However, the FTC argues that Amazon’s aggressive tactics to enroll and retain members crossed legal boundaries.
Amazon has denied wrongdoing, saying it has continuously updated its user interfaces to improve clarity and ease of use. “Customer trust is paramount to us,” the company said in a statement, adding that it looks forward to defending its practices at trial.
The outcome of the trial, scheduled for early 2026, could have major implications for online subscription services and digital marketplaces across the tech industry. A ruling against Amazon could lead to stricter regulation of how companies present, manage, and cancel online subscriptions.
Consumer advocates have praised the judge’s decision as a long overdue check on one of the world’s most powerful tech companies.
“This ruling sends a message that even the biggest players must respect consumer rights,” said Lisa Goodwin, director of the Digital Fairness Project. “Online tricks and traps have no place in the modern economy.”
The FTC is seeking financial penalties, as well as court-ordered changes to Amazon’s subscription design and cancellation systems.
source: reuters.com