FOLLOW US

America September 23, 2025 4 mins read

Amazon Faces FTC Trial Over Prime Sign-Ups and Cancellation Tactics in Seattle

America ı By Samuel Lopez

0 Comments

Untitled

Case Intel

  • FTC trial in Seattle tests whether Amazon misled 40M+ Prime users on sign-ups and cancellation.
  • Judge already ruled Amazon violated ROSCA when collecting billing info before disclosures.
  • Jury to decide liability over next month; damages could reach hundreds of millions plus per-violation fines.

SEATTLE, Washington, Sept. 23 (USA HERALD) — Amazon began trial Tuesday in a Seattle federal courtroom facing claims by the U.S. Federal Trade Commission (FTC) that it duped tens of millions of consumers into Prime memberships without their informed consent and then locked them in with complex cancellation processes.

The civil case, formally filed in 2023, names Amazon.com Inc. and three senior executives as defendants. It is being closely watched as a test of the FTC’s tougher stance against Big Tech, and it could reshape subscription practices across industries if Amazon is found liable.

The FTC alleges that from at least 2017 to 2022, Amazon buried critical disclosures about automatic Prime enrollment behind free-shipping and free-trial offers. Selecting an option such as “Get FREE Same-Day Delivery” allegedly triggered a subscription without clear and conspicuous notice of ongoing $14.99 monthly charges.

Court filings reference the Restore Online Shoppers’ Confidence Act (ROSCA), which requires clear disclosures and simple cancellation mechanisms. According to the FTC, Amazon violated ROSCA both by failing to disclose terms upfront and by creating a multi-screen cancellation process so cumbersome that tens of millions of users abandoned the effort midway.

An FTC expert estimated 40 million consumers were enrolled in Prime without consent. Internal data cited in the complaint shows widespread user drop-off during cancellation.

Amazon has denied wrongdoing, asserting that Prime’s terms were clearly disclosed and that users have multiple straightforward ways to cancel. In a statement included in the company’s pleadings, Amazon said:

“ROSCA does not require that a cancellation mechanism be well-promoted or popular.”

The company argues that the FTC is overreaching by stretching statutory language and mischaracterizing Amazon’s internal efforts to test consumer experience changes.

Amazon enters trial at a disadvantage. In a pretrial ruling, the court found that Amazon had already violated ROSCA when it collected billing information through stored payment methods prior to disclosing Prime’s terms. The judge also ruled that the three executives named as defendants may be held personally liable for any violations the jury finds.

The Amazon case fits a pattern. The FTC under both Trump and Biden has investigated subscription practices across sectors. In April, the agency sued Uber over its Uber One subscription. In August, it targeted LA Fitness for alleged burdensome cancellation policies.

The Amazon probe itself began under President Trump’s first term but culminated in the Biden administration with the current complaint.

What’s at Stake

If the nine-person jury finds Amazon liable, the court could impose statutory fines up to $53,000 per violation plus consumer redress that experts estimate could reach hundreds of millions of dollars.

For Amazon, the reputational damage could be equally severe. The company brands itself as “customer obsessed,” and a finding that it deliberately obstructed customers could weaken its core marketing message.

Procedural Roadmap

The trial is expected to last about one month, with testimony from customers, former employees, and current Amazon staff. After the jury issues its verdict on liability, the judge will determine penalties and damages.

Possible outcomes include:

  • A negotiated settlement to cap exposure.
  • An injunction requiring Amazon to overhaul Prime’s sign-up and cancellation mechanisms.
  • Prolonged appeals, with Amazon seeking to narrow the interpretation of ROSCA at the circuit court level.

Sources

  • FTC v. Amazon.com Inc., Case No. 2:23-cv-00932 (W.D. Wash., filed June 21, 2023) — Complaint PDF
  • FTC press release (June 2023) —gov
  • Pretrial order on partial summary judgment (U.S. District Court, Sept. 2025) — PDF
  • Amazon’s Answer and defenses (filed Aug. 2023) — Court record

🛑 It should be noted that the assertions in the FTC’s lawsuit are allegations and have not yet been proven in a court of law.

Previous Article

Beijing Court Ruling on Mandated Social Insurance Deepens Strain on China’s Workers and Small Businesses

Read More
1788 Posts

Samuel Lopez

With over 20 years of experience in the legal and insurance sectors, Samuel applies his profound legal acumen to investigate and accurately report on the facts.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 11, 2026
Tenet Health 1,500 Layoffs Ripple Across North Texas Job Market
By – Rihem Akkouche
America September 11, 2026
Bears and RB Swift $33.75M Extension Locks In Backfield Anchor
By – Tyler Brooks
America September 11, 2026
Josh Hawley Opens OpenAI Investigation Over…

Key Takeaways Josh Hawley is demanding answers and internal records…

By – Samuel Lopez
America September 11, 2026
Congress Has Seen the Evidence on…

Key Takeaways Lawmakers with security clearances, including Rep. Nancy Mace,…

By – Samuel Lopez
Science & Technology September 11, 2026
iPhone Duo Finally Gives Apple Fans…

CUPERTINO, Calif. — iPhone Duo will bring a folding screen…

By – Michallie Harrison
America September 11, 2026
Mexican Food Company Announces California Layoffs…

Key Takeaways Ruiz Foods is cutting 176 jobs at its…

By – Samuel Lopez
America September 11, 2026
Sam Bankman-Fried Seeks Supreme Court Review…

By Samuel López | USA Herald Sam Bankman-Fried is taking…

By – Samuel Lopez
America September 11, 2026
5th Circuit Vacates $125M Award Over…

Key Takeaways A divided Fifth Circuit upheld relief from a…

By – Samuel Lopez
America September 11, 2026
5th Circuit Vacates $125M Award Over…

Key Takeaways A divided Fifth Circuit upheld relief from a…

By – Samuel Lopez
America September 10, 2026
41% of Lawyers Say Legal Careers…

Key Takeaways More than 41% of surveyed lawyers say the…

By – Samuel Lopez
America September 10, 2026
Trump Promises $5,000 Dividend Checks if…

By Samuel López | USA Herald DALLAS — President Donald…

By – Samuel Lopez
America September 10, 2026
Hawaii Couple Sentenced to Prison After…

Key Takeaways Scott Hawver received 16 months in prison, and…

By – Samuel Lopez
America September 10, 2026
Flock Safety Cracks Down on Police…

Flock Safety is introducing mandatory safeguards for its automated license-plate…

By – Jackie Allen
America September 10, 2026
Massachusetts Judge Publicly Reprimanded Over 2018…

Key Takeaways The Massachusetts Supreme Judicial Court publicly reprimanded Judge…

By – Samuel Lopez
America September 10, 2026
OpenAI Cybersecurity Under Scrutiny After AI…

OpenAI cybersecurity concerns are growing after researchers reported that a…

By – Jackie Allen
America September 9, 2026
To Catch a Predator: Robert Pattinson…

The phrase Catch a Predator became synonymous with one of…

By – Jackie Allen
America September 8, 2026
Trump-a-Palooza: Republicans Put Trump at Center…

DALLAS — Trump-a-Palooza is bringing Republicans from across the country…

By – Jackie Allen
America September 8, 2026
Iranian Twins Face Death Sentence and…

Iranian twins Taraneh and Romina Rahimi, 20, are facing drastically…

By – Jackie Allen
America September 8, 2026
AI Amnesia: Bigger Diffusion Models May…

AI Amnesia may be an emerging problem for researchers, artists…

By – Jackie Allen
America September 8, 2026
Bats Invade Homes in New York…

New York is experiencing a surge in bat encounters this…

By – Jackie Allen
America September 10, 2026
PGR Filed for Bankruptcy as Solar…

Solar power promises endless energy from an endless source —…

By – Rihem Akkouche
America September 10, 2026
Frazier $1.1B Public Fund Signals Fresh…

When investors line up not just to meet a funding…

By – Tyler Brooks
America September 10, 2026
Enbridge-Tallgrass Crude Oil Deal Locks In…

In the world of energy infrastructure, growth often looks less…

By – Tyler Brooks
America September 10, 2026
Brian Duckworth Death Silences a Voice…

Some voices carry further than the rooms they’re born in.…

By – Tyler Brooks
America September 10, 2026
Wrongful Death Lawsuit Against Energy Drink…

Key takeaways The latest reported order paused the family’s lawsuit…

By – Samuel Lopez
America September 10, 2026
Missing Scientists and Defense Personnel Continue…

Key takeaways Four people central to earlier coverage remain publicly…

By – Samuel Lopez
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 5, 2026
Georgian National Indicted in Money Laundering…

By Samuel López | USA Herald A federal grand jury…

By – Samuel Lopez
America September 1, 2026
DOJ Drops Hammer On Kansas School…

By Samuel López | USA Herald The U.S. Department of…

By – Samuel Lopez
America August 28, 2026
CVS Ordered to Answer for AI-Fueled…

Case at a Glance A Manhattan federal judge has ruled…

By – Samuel Lopez
Breaking News August 27, 2026
Sacred Horse Year Pilgrimage Turns Catastrophic…

A Disaster Unfolding in Real Time, Legal and Diplomatic Fallout…

By – Samuel Lopez
America August 27, 2026
When Your Chatbot Becomes the Star…

Legal Analysis: How AI Conversations Are Reshaping the Rules of…

By – Samuel Lopez
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter