The original lawsuit, filed in June, alleged that Amazon tricked millions of people into unwittingly subscribing to Prime through buttons that were prominently displayed during the checkout process. The FTC added new details Wednesday to support its claims, including internal messages and the names of three senior Amazon executives who allegedly played “key roles” in the scheme.
The executives include two of Amazon’s highest-ranking executives at the time: Neil Lindsay – the senior vice president who ran Prime – and Russell Grandinetti, Amazon’s senior vice president of international consumers. The FTC also appointed Jamil Ghani, an Amazon vice president who oversaw the Prime subscription program.
The amended complaint accuses Amazon of using deceptive tactics to create a Prime registration process that could easily be triggered by customers by mistake. According to the FTC, Amazon employees raised concerns about these strategies with company leadership in 2016, but those executives took no action.
For example, Amazon designers once asked Lindsay about the company’s use of dark patterns – elements of the Amazon interface that are supposedly aimed at enticing customers to subscribe to Prime. Lindsay, the lawsuit says, said Amazon was “okay” with her use. His statement read: “Once consumers become Prime members – even unknowingly – they will see what a great program it is and will remain members.”
The amended complaint also includes new internal messages and emails indicating that Amazon and its executives were aware of their deception. A company newsletter says, “The problem of accidental Prime sign-ups is well-documented,” but admits that Prime customers “do sign up.”[] appeared accidentally and/or [don’t] see auto-renewal terms.”
After customers signed up, the FTC argues, Amazon also instituted an intentionally complicated cancellation process. The trial was codenamed “Iliad,” referring to Homer’s ancient epic.
Lindsay, the complaint says, internally floated the idea of making the Prime cancellation process as easy as the Prime registration process, but said he found the idea “scary.”
Amazon is one of many companies that the FTC has taken action against in recent years to combat the use of dark patterns. Last year, Epic Games paid $520 million after the agency accused the company of deceiving players into purchasing in-game content. Earlier this year, the FTC also proposed a formal ban on subscriptions that are easier to buy than cancel.