Amazon: Violating the law in the US with Prime

Amazon will have to defend itself against accusations that it forced Prime membership and made it difficult to cancel. The trial is scheduled to begin today, but the Seattle-based company has already lost the preliminary hearing. A judge ruled it violated consumer protection laws.

The jury will be chosen today, and the lawyers are expected to present their opening arguments. According to the U.S. Federal Trade Commission ( FTC ), Amazon used a "dark pattern" to force Prime membership and adopted an overly complex cancellation process.

Judge John Chun's decision last week also concerns Prime , but the FTC's charges relate to the collection of user data. Under the Restore Online Shoppers' Confidence Act (ROSCA), a service's terms must be clearly and prominently disclosed before billing information is collected. Amazon, however, displayed Prime's terms after collecting billing data.

The judge emphasized that no jury would have voted in favor of Amazon, as the evidence clearly shows the order in which information is collected during the purchase process. The Seattle-based company, however, argued that the terms of service are displayed at the same time as the billing information.

The judge also ruled that two Amazon executives (Neil Lindsay and Jamil Ghani), who had the authority to control the flow of Prime sign-ups and cancellations, can be held personally liable for any violations proven in court.

The trial, which begins today, is expected to last at least three weeks. In this case, in addition to ROSCA, Amazon is also alleged to have violated antitrust law (FTC Act). About three years ago , the Seattle-based company simplified the process for canceling Prime memberships in Europe. Amazon will face another trial (no earlier than 2027) for alleged anticompetitive practices related to the third-party marketplace.