The Federal Trade Commission is arguing in court that when Amazon employees nicknamed their Prime cancellation process “Iliad,” they knew exactly what they were doing. The government’s lawsuit, now at trial, alleges this codename is proof that Amazon intentionally made unsubscribing an epic struggle to prevent customers from leaving.
The trial, which began this week, focuses on claims that Amazon engaged in a two-part deceptive strategy. First, it allegedly used “dark patterns” at checkout to lure and trick customers into signing up for the $139-per-year service without giving clear, informed consent.
Second, once customers were enrolled, they faced the “Iliad” maze if they tried to cancel. The FTC describes a convoluted system of multiple pages and confusing options designed to frustrate and dissuade users. The agency contends this was a deliberate tactic to minimize subscriber churn and maximize revenue.
This lawsuit is a major component of the current administration’s push to hold Big Tech companies accountable. The trial is being closely watched as a bellwether for how U.S. courts will treat cases involving manipulative digital design. A victory for the FTC could lead to sweeping changes across the subscription economy.
Amazon is fighting the allegations, claiming the FTC’s case is built on hyperbole and outdated information. The company maintains that its processes have always been lawful and have been improved over time to enhance clarity for customers. The jury will hear testimony and review evidence over the next four weeks to determine if the “Iliad” was an illegal consumer trap.