Amazon Prime has become a central part of our daily routines and is most known for its two-day shipping, endless streaming, and exclusive deals. While its convenience makes it a household name, the FTC has shed light on a side we did not quite see. It turns out Prime is not as straightforward as it is painted to be, and has used illegal tricks to have people sign up for the membership.
Amazon Prime faces FTC scrutiny over sneaky sign-ups and hard-to-cancel subscriptions
While canceling a subscription can generally be a cumbersome task, you may have noticed how, with Prime especially, the process feels too complicated, with prompts making you second-guess your plan, and you end up being stuck with the membership. The Federal Trade Commission argues that this is a manipulative strategy by Amazon, where they have tricked people into Prime without their proper consent and made the exit almost impossible. The FTC has been actively looking into user consent and safety to ensure their privacy is not compromised.
The case was filed against Amazon in 2023, and the company was accused of using deceptive design strategies, also referred to as dark patterns, to have consumers enroll in Amazon Prime without any clear exit plan. Now, in September 2025, a federal judge ruled that Amazon violated the Restore Online Shoppers' Confidence Act (ROSCA) by collecting billing information from Prime subscribers before the service terms were fully disclosed via The Verge.
While the case is to begin this Monday, this development can be taken as a partial win for the FTC, as the judge was on board with users being misled because canceling Prime was quite hard. It has been stated that two top executives may be specifically held accountable if the FTC ends up proving the case. However, Amazon blatantly denies the claims and asserts that its sign-up and cancellation process is lawful and straightforward.
If the FTC wins the case, it could completely redefine how Prime is laid out and how people sign up or cancel subscriptions, as it could no longer have half-hidden terms. This change will not only be limited to Amazon but could redefine the subscription economy broadly, where trust and transparency are just as valued as revenue. While Amazon's lawyers prepare for their case, consumers should also be more vigilant about the digital services they heavily rely on. Steps like these help build trust and give users more confidence in what they are signing up for.
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