Amazon has violated consumer protection law by collecting billing information from Prime subscribers before disclosing the terms of service, US District Judge John Chinin ruled on Wednesday.

According to Reuters, the ruling favours the US Federal Trade Commission (FTC) in its lawsuit accusing the online retailer of enrolling tens of millions of customers in Prime without their consent.

In 2023, the FTC took action against Amazon for what it described as years-long efforts to enrol consumers into its Prime programme without their consent whilst knowingly making it difficult for consumers to cancel their subscriptions. The FTC accused Amazon of using "manipulative, coercive, or deceptive user-interface designs known as dark patterns to trick consumers into enrolling in automatically-renewing Prime subscriptions."

The commission also alleges that Amazon obstructed tens of millions of cancellation requests through complex cancellation methods.

"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," said FTC Chair Lina M. Khan in a statement at the time. "These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from dark patterns and other unfair or deceptive practices in digital markets."

According to the agency, Amazon's actions violate the Restore Online Shoppers Confidence Act (ROSCA), a US federal law that aims to protect consumers from deceptive practices. The law addresses situations such as being charged for goods or services without clear understanding or consent, requiring sellers to provide clear and conspicuous disclosure of terms, express consent for charges, and a simple way to stop recurring charges.

"Today's decision confirms that Amazon defrauded American consumers by failing to disclose all the terms of Prime before collecting consumers' payment information," said Chris Mufarrige, head of the FTC's bureau of consumer protection. "The Trump-Vance FTC intends to make them whole."

The judge also ruled that two Amazon executives are liable for any violations proven by the FTC during the trial, preventing Amazon from arguing that ROSCA did not apply to Prime memberships.

As of September 2025, the case remains ongoing and has not been fully resolved. Amazon has filed a motion to dismiss the lawsuit, and the case is expected to continue as legal proceedings unfold.

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