Amazon Faces Civil Lawsuit Over Prime Subscription Practices

Amazon.com (AMZN) is embroiled in a civil trial after the Federal Trade Commission accused the e-commerce giant of misleading nearly 40 million Prime subscribers. The FTC alleges violations of consumer-protection laws, seeking refunds, penalties, and an injunction against deceptive subscription tactics.

A federal judge recently ruled Amazon violated laws by collecting billing details before disclosing full Prime terms. The company denies wrongdoing, claiming transparency in membership terms and cancellation processes. Jurors in Seattle will now determine whether Amazon improperly obtained customer consent.

The case highlights growing regulatory scrutiny of subscription models across tech platforms. While the outcome remains uncertain, the proceedings could establish new precedents for digital service transparency.