A Labyrinthine Exit: Lawsuit Accuses Amazon of Trapping Prime Members

The Federal Trade Commission has taken Amazon to trial, accusing the company of creating a “labyrinthine” exit for its Prime members. The lawsuit alleges that while signing up for the service was deceptively simple, canceling it was an intentionally arduous process, part of a broader strategy to trap consumers into paying for the $139-a-year subscription.
The government’s case focuses heavily on an internal system codenamed “Iliad,” which was used to manage Prime cancellations. The FTC argues that this process was designed to be a confusing, multi-step ordeal to frustrate users into abandoning their cancellation attempt. The very existence of the codename, the FTC claims, demonstrates Amazon’s intent.
The lawsuit also details how Amazon allegedly got customers into this trap in the first place. The FTC is presenting evidence of “dark patterns” in the company’s checkout design, which steered customers towards enrolling in Prime without their full, informed consent. These designs allegedly preyed on common user behaviors to boost subscription numbers.
This trial marks a significant escalation in the U.S. government’s efforts to regulate Big Tech. It shows that regulators are not just concerned with monopoly power but also with the specific design choices companies make that can harm consumers. The FTC is seeking both monetary damages and a permanent injunction against these practices.
Amazon is vigorously defending its business model, arguing that its subscription and cancellation processes are lawful and customer-friendly. The company contends that the FTC is misrepresenting its intentions and that it has proactively made improvements to its user interface. The jury will now decide if Amazon’s “labyrinth” was an illegal trap.