The U.S. government is effectively accusing Amazon of creating a “Hotel California” effect for its Prime members, where “you can never leave.” A federal trial is now underway to examine this claim, with the Federal Trade Commission arguing that the company’s cancellation process was an illegal trap.
The FTC’s case centers on the “Iliad” flow, a multi-step cancellation process so arduous that it was named after an epic war. The government contends this was a deliberate design choice, a “labyrinth” meant to frustrate users into remaining subscribers against their will, embodying the spirit of the famous song.
The lawsuit also alleges that the entry to this “hotel” was deceptively easy. The FTC claims Amazon used “dark patterns” at checkout to trick users into “checking in” to Prime. These manipulative designs allegedly made it difficult to complete a purchase without also agreeing to a subscription.
This trial is a major test of how consumer protection laws apply to the digital subscription economy. A ruling against Amazon could force many companies to provide a “check-out” process that is as simple and straightforward as the “check-in.”
Amazon is fighting the allegations, asserting that its subscription model has always allowed for easy cancellation. The company’s defense is that the FTC is exaggerating the complexity of its old systems and ignoring recent updates that have streamlined the process for all users.
