Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 1 of 92 

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UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF WASHINGTON 

AT SEATTLE 

FEDERAL TRADE COMMISSION, Civil Action No. 2:23-cv-0932-JHC 

Plaintiff, AMENDED COMPLAINT FOR 

PERMANENT INJUNCTION, 

v. CIVIL PENALTIES, MONETARY 

RELIEF, AND OTHER 

AMAZON.COM, INC., a corporation; EQUITABLE RELIEF 

NEIL LINDSAY, individually and as an officer of 

AMAZON.COM, INC.; 

RUSSELL GRANDINETTI, individually and as 

an officer of AMAZON.COM, INC.; and 

JAMIL GHANI, individually and as an officer of 

AMAZON.COM, INC., 

Defendants. 

Plaintiff, the Federal Trade Commission (“FTC” or “the Commission”), alleges: 

1. Plaintiff brings this action under Sections 5(a), 5(m)(1)(A), 13(b), 16(a), and 19 of 

the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(m)(1)(A), 53(b), 57b, and the 

Restore Online Shoppers’ Confidence Act, (“ROSCA”), 15 U.S.C. § 8404, which authorize the 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 1 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 
 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 2 of 92 

FTC to seek, and the Court to order, permanent injunctive relief, restitution, civil penalties, and 

other equitable relief for Defendants’ acts or practices in violation of Section 5(a) of the FTC 

Act, 15 U.S.C. § 45(a), and Section 4 of ROSCA, 15 U.S.C. § 8403. 

SUMMARY OF CASE 

2. For years, Defendant Amazon.com, Inc. (“Amazon”) and its leadership have 

knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service 

(“Nonconsensual Enrollees” or “Nonconsensual Enrollment”). Specifically, Amazon used 

manipulative, coercive, or deceptive user-interface designs known as “dark patterns” to trick 

consumers into enrolling in automatically-renewing Prime subscriptions. 

3. The Nonconsensual Enrollment problem was well known within Amazon. The 

company’s internal documents are littered with references to “accidental” signups. In early 

2019, for example, an Amazon survey showed of consumers stated their reason for 

cancelling Prime was that they never intended to enroll in the first place. And in September 

2020, Amazon estimated that Prime subscribers were “unaware” they had 

subscribed to Prime. 

4. In a draft memorandum from late 2020, Amazon designers and researchers 

documented the company’s use of techniques “designed to mislead or trick users to make them 

do something they don’t want to do, like signing up for a recurring bill.” 

5. Some Amazon employees pushed the company executives responsible for 

Prime—including Defendants Neil Lindsay (“Lindsay”), Russell Grandinetti (“Grandinetti”) and 

Jamil Ghani (“Ghani”)—to address Nonconsensual Enrollment and make changes so that 

Amazon would not be tricking its customers. One employee, for example, wrote to Ghani: “The 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 3 of 92 

way I see it, we are not winning for customers by ignoring the simple and obvious lack of 

information but applauding a business gain. We congratulate when someone changes a headline 

color, or the style of a table, but don’t notice we are not even telling customers what they are 

signing up for . . . .” 

6. Despite their knowledge of the problem and pleas from some employees to fix it, 

Amazon and its leadership—including Lindsay, Grandinetti, and Ghani—slowed, avoided, and 

even undid user experience changes that they knew would reduce Nonconsensual Enrollment 

because those changes would also negatively affect Amazon’s bottom line. As one internal 

memorandum stated, Amazon decided “clarifying” the enrollment process was not the “right 

approach” because it would cause a “shock” to business performance. 

7. For years, Amazon also knowingly complicated the cancellation process for 

Prime subscribers who sought to end their membership. Under significant pressure from the 

Commission—and aware that its practices are legally indefensible—Amazon substantially 

revamped its Prime cancellation process for at least some subscribers shortly before the filing of 

the Complaint for Permanent Injunction, Civil Penalties, Monetary Relief, and Other Equitable 

Relief (“Complaint”). Dkt. #1. However, prior to that time, the primary purpose of the Prime 

cancellation process was not to enable subscribers to cancel, but rather to thwart them. Fittingly, 

Amazon named that process “Iliad,” which refers to Homer’s epic about the long, arduous Trojan 

War. Amazon designed the Iliad cancellation process (“Iliad Flow”) to be labyrinthine, and 

Amazon and its leadership—including Lindsay, Grandinetti, and Ghani—slowed or rejected user 

experience changes that would have made Iliad simpler for consumers because those changes 

adversely affected Amazon’s bottom line. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 4 of 92 

8. As with Nonconsensual Enrollment, the Iliad Flow’s complexity resulted from 

Amazon’s use of dark patterns—manipulative design elements that trick users into making 

decisions they would not otherwise have made. 

JURISDICTION AND VENUE 

9. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

and 1345. 

10. Venue is proper in this District under 28 U.S.C. § 1391(b)(2), (b)(3), (c)(1), 

(c)(2), (c)(3), and (d), and 15 U.S.C. § 53(b). 

PLAINTIFF 

11. The FTC is an independent agency of the United States Government created by 

the FTC Act, which authorizes the FTC to commence this district court civil action by its own 

attorneys. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. 

The FTC also enforces ROSCA, 15 U.S.C. §§ 8401-8405, which prohibits the sale of goods or 

services on the Internet through negative option marketing without meeting certain requirements 

for disclosure, consent, and cancellation to protect consumers. A negative option is an offer in 

which the seller treats a consumer’s silence—i.e., their failure to reject an offer or cancel an 

agreement—as consent to be charged for goods and services. 16 C.F.R. § 310.2(w). 

DEFENDANTS 

12. Defendant Amazon transacts and has transacted business in this District and 

throughout the United States. It is one of the world’s largest online retailers, and is 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 5 of 92 

headquartered in Seattle, Washington, with its principal place of business at 410 Terry Avenue 

North, Seattle, Washington 98109. 

13. At all times relevant to this Amended Complaint, acting alone or in concert with 

others, Amazon advertised, marketed, distributed, or sold a paid subscription service, Prime, that 

gives subscribers throughout the United States access to additional services otherwise 

unavailable or available only at an additional charge to other consumers. Among other things, 

these premium services include expedited “free” delivery of merchandise from Amazon’s vast 

online marketplace, streaming content, and grocery delivery. 

14. Defendant Lindsay resides in Laguna Beach, California. Lindsay has worked as a 

senior Amazon executive since 2010. From February 2018 through November 2021, Lindsay 

was the Amazon executive with the most responsibility for the Prime subscription program, 

which he managed as an Amazon Vice-President and Senior Vice-President. During this period, 

Lindsay joined Amazon’s S-Team, which runs the entire company and reports directly to the 

CEO. 

15. From February 2018 through November 2021, acting alone or in concert with 

others, Lindsay formulated, directed, controlled, had the authority to control, or participated in 

the acts and practices of Amazon, including the acts and practices set forth in this Amended 

Complaint. Lindsay participated in these unlawful acts and practices by directing that they 

continue despite knowing the consumer injury they caused. 

16. Lindsay’s participation in the unlawful acts and practices set forth in this 

Amended Complaint includes, among other things: (a) in mid-2018, Lindsay declined to 

implement changes that would have avoided Nonconsensual Enrollment; (b) Lindsay 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 6 of 92 

participated in a June 17, 2019 meeting with Defendant Grandinetti at which these executives 

decided not to make changes that would reduce Nonconsensual Enrollment; (c) in December 

2020, Lindsay participated in a decision to reverse changes that would help prevent 

Nonconsensual Enrollment; and (d) Lindsay oversaw Amazon employees who studied the Iliad 

Flow, including the complications it presented to subscribers attempting to cancel, and who 

developed simpler alternatives, which Lindsay did not implement. 

17. Lindsay knew these acts and practices would cause consumer injury because, 

among other things: (a) Lindsay directed a “deep dive” into the Nonconsensual Enrollment 

problem in 2018 and received numerous memoranda addressing Nonconsensual Enrollment 

including, among others, a 2019 memorandum entitled “Customer Frustrations Elimination 

Program: Prime Frustrations” (“Prime Frustrations Memo”) that identified the fact that 

“customers sign up without knowing they did” as a “customer problem”; and (b) Lindsay 

received internal memoranda, emails, and oral communications describing the Iliad Flow and the 

complications it presented to Prime subscribers attempting to cancel, and he knows, and has 

known at all times relevant to this Amended Complaint, that the Iliad Flow is not simple. 

18. Defendant Lindsay has transacted business in this District and throughout the 

United States, and continues to transact business in this District and throughout the United 

States. 

19. Defendant Grandinetti resided in the United States during the majority of the 

period during which he participated in the acts and practices set forth in this Amended Complaint 

(Grandinetti moved to the United Kingdom in 2021 to further his employment with Amazon). 

Grandinetti oversees Amazon’s Prime subscription program as an Amazon Senior Vice-President 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 7 of 92 

with a portfolio that includes Prime. During this period, Grandinetti was a member of Amazon’s 

S-Team, which runs the entire company and reports directly to the CEO. 

20. From at least January 1, 2018 through the present, acting alone or in concert with 

others, Grandinetti formulated, directed, controlled, had the authority to control, or participated 

in the acts and practices of Amazon within the United States, including the acts and practices set 

forth in this Amended Complaint. As an Amazon executive with authority over the Prime 

enrollment and cancellation process within the United States, Defendant Grandinetti participated 

in these unlawful acts and practices by directing that they continue despite knowing the 

consumer injury they caused. 

21. Grandinetti’s participation in the unlawful acts and practices set forth in this 

Amended Complaint and occurring within the United States includes, among other things: (a) 

Grandinetti directed the preparation of, and reviewed, the Prime Frustrations Memo summarizing 

the Nonconsensual Enrollment problem; (b) Grandinetti ran a June 17, 2019 meeting with 

Defendant Lindsay and others in which Grandinetti discussed the Prime Frustrations Memo and 

directed subordinates not to address Nonconsensual Enrollment unless it could be resolved while 

maintaining Prime subscription numbers; and (c) Grandinetti oversaw, and continues to oversee, 

Amazon employees who studied the Iliad Flow including the complications it presented to 

subscribers attempting to cancel, and who developed simpler alternatives, which Grandinetti did 

not implement. 

22. Grandinetti knew these acts and practices would cause consumer injury because, 

among other things: (a) he reviewed the 2019 memorandum, which identified the fact that 

“customers sign up without knowing they did” as a major “customer problem”; and (b) he 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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knows, and has known at all times relevant to this Amended Complaint, that the Iliad Flow is not 

simple. 

23. Defendant Grandinetti has transacted business in this District and throughout the 

United States, and continues to transact business in this District and throughout the United 

States. 

24. Defendant Ghani resides in Bellevue, Washington. Since 2019, Ghani has 

overseen Prime’s subscription program as a Vice-President. From 2019 through the present, 

acting alone or in concert with others, Ghani formulated, directed, controlled, had the authority 

to control, or participated in the acts and practices of Amazon, including the acts and practices 

set forth in this Amended Complaint. As an Amazon executive with authority over the Prime 

enrollment and cancellation process, Ghani participated in these unlawful acts and practices by 

directing that they continue despite knowing the consumer injury they caused. 

25. Ghani’s participation in the unlawful acts and practices set forth in this Amended 

Complaint includes, among other things: (a) Ghani participated in a December 2020 decision to 

reverse changes that would help prevent Nonconsensual Enrollment; and (b) Ghani oversaw, and 

continues to oversee, Amazon employees who studied the Iliad Flow and the complications it 

presented subscribers attempting to cancel, and who developed simpler alternatives, which Ghani 

did not implement. 

26. Ghani knew these acts and practices would cause consumer injury because, 

among other things: (a) Ghani received dozens of internal memoranda, emails, and oral 

communications describing the Nonconsensual Enrollment problem including, for example, a 

2020 memorandum entitled “US Prime Performance Update”; and (b) Ghani received internal 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 9 of 92 

memoranda, emails, and oral communications describing the Iliad Flow and the complications it 

presented to subscribers attempting to cancel, and he knows, and has known at all times relevant 

to this Amended Complaint, that the Iliad Flow is not simple. 

27. Defendant Ghani has transacted business in this District and throughout the 

United States, and continues to transact business in this District and throughout the United 

States. 

COMMERCE 

28. At all times relevant to this Amended Complaint, Defendants have maintained a 

substantial course of trade in or affecting commerce, as “commerce” is defined in Section 4 of 

the FTC Act, 15 U.S.C. § 44. 

DEFENDANTS’ BUSINESS ACTIVITIES 

29. Consumers pay $139 per year or $14.99 monthly to subscribe to Prime. Prime 

subscription fees account for $25 billion of Amazon’s annual revenue. 

30. Approximately 70% of Amazon’s revenue comes from American consumers. 

31. Subscribers are critical to Amazon’s overall ecommerce business because Prime 

subscribers spend more than as much shopping on Amazon as compared to nonPrime shoppers. 

32. Consequently, one of Amazon’s primary business goals—and the primary 

business goal of Prime—is increasing subscriber numbers. 

33. Within Amazon’s corporate structure, the Prime organization or department 

(“Prime Organization”) operates Prime. Amazon evaluates the Prime Organization’s 

performance based on the number of subscribers. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 10 of 92 

Typical Prime Enrollment Experiences 

34. Consumers can subscribe to Prime through multiple pathways including through 

Amazon devices (like the Amazon Fire TV streaming device), while using Prime Video, or 

through Prime’s unique webpage (“Prime Central”). However, subscriptions occur through 

the Amazon shopping checkout process. 

35. The basic consumer checkout enrollment experience proceeds as follows on both 

desktop and mobile devices. Consumers who are not Prime members visit Amazon’s website— 

www.Amazon.com—to shop. They place items in their cart, and then provide (or confirm) their 

billing and address information. They then select a large orange “Continue” button, which 

typically appears in the lower right corner of the page, and move through additional pages to 

proceed with their purchase. Finally, consumers either complete their order by purchasing the 

items in their cart or abandon their cart. 

36. Amazon presents all consumers who are not Prime subscribers with at least one 

opportunity (also known as an “upsell”)—and often several opportunities—to join Prime before 

those consumers place their order on the final checkout page. Amazon has two primary types of 

upsells that enroll consumers: interstitials and non-interstitials. An interstitial is a page that 

interrupts consumers’ online shopping experience by appearing before the page that consumers 

seek to access in the first place. In contrast, non-interstitial upsells are elements imbedded 

within checkout pages, including shipping-option selection and payment pages. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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No thanks, I do not want fast, free shipping Get FREE Two-Day Shipping 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 11 of 92 

37. On desktop devices, Amazon has several Prime upsells: an interstitial upsell 

called the Universal Prime Decision Page (“UPDP”), and three non-interstitial upsells called the 

Shipping Option Select Page (“SOSP”), Single Page Checkout (“SPC”), and True Single Page 

Checkout (“TrueSPC”). On mobile devices, Prime upsells mirror those on desktop, and include 

the UPDP, SOSP, and SPC. 

38. UPDP on Desktop. Amazon calls the Prime interstitial upsell the Universal 

Prime Decision Page. Although the UPDP has changed over time, it generally interrupts 

consumers’ online shopping experience by presenting them with a prominent button to enroll in 

Prime and a comparatively inconspicuous link to decline. Consumers cannot avoid the UPDP. 

The upsell forces consumers to select either the button or the link to proceed to checkout. See 

Attachments A–D. 

39. The UPDP’s orange button, which enrolls a consumer in Prime if clicked, is 

located toward the bottom right of the screen and often includes language referencing “free 

shipping” or a “free trial.” For instance, in May 2018, the UPDP orange button read: “Get FREE 

Two-Day Shipping.” See Attachment A. In February 2020, the button read “Get FREE TwoDay Delivery.” See Attachment B. In some instances, the button reads “Start Your 30-Day 

Prime FREE Trial” or a variant thereof, as it did in October 2018 and July 2020. See 

Attachments C and D. Additionally, the button is stacked above a gray box that either states 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 12 of 92 

“Enjoy Prime FREE for 30 days,” see Attachment A and B, “No minimum order size,” “No 

commitments. Cancel anytime,” see Attachments C and D, or similar language. 

40. If a consumer clicks the orange button, Amazon enrolls the consumer in a Prime 

free trial, even if the consumer later abandons the cart and does not order the merchandise. 

41. The UPDP’s blue link, which declines the Prime membership if clicked, is located 

towards the bottom left of the screen and includes language that the consumer will not receive 

“free shipping.” For example, in 2018, the blue link read “No thanks, I do not want fast, free 

shipping,” see Attachment A, and in February 2020 read “No thanks, I do not want fast, FREE 

delivery,” see Attachment B. Sometimes the blue link refers to benefits more generally. For 

example, in October 2018, the link stated “Continue without the Amazon Prime benefits.” See 

Attachment C. More recently, the link states “No thanks.” See Attachment D. 

42. The contrast between an orange “double-stacked” button to enroll in Prime and a 

blue link to decline prioritizes the enrollment option over the decline option and creates a visual 

imbalance. See Attachments A–D. 

43. The UPDP does not adequately disclose the price of the monthly auto-renewal 

feature of Prime. That information is located in small print at the bottom of the page, along with 

a link to the Prime terms and conditions. See Attachments A–D. 

44. By October 2022, Amazon modified the circumstances under which prospective 

members see the UPDP. Amazon distinguishes between (i) existing Amazon accountholders 

who are not Prime subscribers, but have shopped on Amazon before and created a profile with 

shipping and billing information, and (ii) consumers who have not shopped on Amazon before or 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

12 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 13 of 92 

are otherwise not associated with an existing customer profile. At present, the checkout flow 

UPDP presents as follows to consumers with an existing Amazon account: 

(a) The UPDP contains a banner across the top reading: “thank you for being 

a loyal customer. We’re giving you Prime FREE for 30 days,” with a line immediately below 

stating the date by which the customer will receive the items “with Prime.” See Attachment E. 

(b) On the right-hand side beneath the banner, Amazon places a chart 

comparing the delivery cost without Prime ($5.99 in Attachment E) with the free delivery cost of 

Prime. Below the chart, Amazon states how much money the consumer would save on their 

“Prime eligible items” with “FREE Prime Delivery” on the order. Amazon also states that 

“After your FREE trial, Prime auto-renews for just $14.99/month.” See Attachment E. 

(c) On the bottom right-hand side, Amazon places a double-stacked button. 

The orange top button reads “Get FREE Prime Delivery with Prime,” and the bottom grey box 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 14 of 92 

reads “Enjoy Prime FREE for 30 days.” See Attachment E. If the consumer clicks on the orange 

button, Amazon enrolls the consumer into Prime, even if the consumer does not complete the 

order for the items in their cart. 

(d) On the bottom left-hand side, Amazon has placed a blue link that reads 

“No thanks.” A consumer clicking this link would avoid a Prime membership and proceed to the 

following page of the checkout flow. See Attachment E. 

(e) To continue purchasing the item(s) in their cart, consumers must either 

choose the larger orange “Get FREE Prime delivery” button or the smaller blue “No thanks” 

link. See Attachment E. 

(f) At the very bottom of the page, in small print, Amazon presents a link to 

the Prime terms and conditions, and text stating: “Your Amazon Prime membership continues 

until cancelled. If you do not wish to continue for $14.99/month plus any applicable taxes, you 

may cancel anytime by visiting Your Account and adjusting your membership settings.” See 

Attachment E. 

45. At present, the UPDP within the checkout flow presents as follows to consumers 

who set up a brand-new Amazon account in making their first purchase: 

(a) The UPDP reads “Try Prime FREE for 30 days and save $5.99 on this 

order in both shipping and savings. Cancel anytime” at the top. Underneath, Amazon adds 

“After your trial, Prime is only $14.99/month.” Amazon also includes a table listing additional 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

14 
 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 15 of 92 

Prime benefits, such as “Fast, FREE delivery on Prime eligible items,” “All the music + top 

podcasts ad-free on Amazon Music,” and “Prime Video.” See Attachment F. 

(b) Amazon then shows two buttons. The orange button on the right states 

“Sign up for Prime” and the grey button on the left states “Not right now.” If a consumer clicks 

on the “Sign up for Prime,” Amazon immediately enrolls the consumer. See Attachment F. 

(c) At the bottom of the page, in small print, Amazon presents a link to the 

Amazon Prime terms and conditions, as well as text that reads: “Your Amazon Prime 

membership continues until cancelled. If you do not wish to continue for $14.99/month plus any 

applicable taxes, you may cancel anytime by visiting Your Account and adjusting your 

membership settings.” See Attachment F. 

(d) The UPDP appears “on top” of the last page of the checkout flow, forcing 

the consumer to select “Sign up for Prime” or “Not right now” to proceed to the last page of the 

checkout flow. See Attachment F. 

46. Separate from the UPDP, various Prime upsells appear as elements within the 

online checkout flow, which itself appears in various versions to consumers depending on factors 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

15 
 

 

 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 16 of 92 

(i.e., whether a consumer has previously declined a Prime upsell). There are three desktop 

checkout flow variations: a) the Shipping Option Select Page, b) the Single Page Checkout page, 

and c) the True Single Page Checkout. 

47. SOSP on Desktop. The Shipping Option Select Page sought to enroll consumers 

in Prime by providing them a series of shipping options, with estimated delivery dates, and preselecting the fastest shipping option, which also enrolled consumers in Prime. The upsell 

promised, for example, “FREE Same-Day Delivery” and a “30-day FREE trial of Prime,” but 

failed to disclose Prime’s price or the fact that the subscription service would renew 

automatically. The SOSP provided only a belated, inconspicuous disclosure of the terms of 

Prime membership. 

48. In particular, the SOSP checkout flow on desktop began with a page where the 

consumer could check out, followed by a page to select or input a shipping address, and then a 

“Choose your shipping options” page, where consumers selected their shipping options for the 

items they were purchasing. See Attachment G, at 3–4. This page displayed the different 

shipping options, including speed and price. The SOSP shipping options page preselected the 

first option—“FREE Same-Day Delivery with a free trial of Amazon Prime”—which would 

enroll the consumer in Prime. If the consumer did not want free shipping with Prime, the 

consumer needed to select another option to avoid a Prime membership. Above the shipping 

options, Amazon displayed an orange banner stating “Good news [name], we’re giving you a 30-

day FREE trial of Prime.” The page did not show the price of a Prime subscription, nor did it 

disclose the monthly auto-renewal. See Attachment G, at 4. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

16 
 

 

Choose a dellvery option: 

I Good news Test, we're giving yoo a JO-day FREE bill of Prime 

@ Te>doy 

FREE S., D•, Ddn,.,ry wtth., free tr c,f •~~•!'rime 

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$1060 · 5hippt 

0 To1hy 2PM - 6PM 

$12 99 l,xt~~t O b\'<i<y 

Conllnue 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 17 of 92 

49. Once the consumer selected a shipping option, the consumer proceeded to the 

“payment method” page to choose the payment method (e.g., credit card). The page made no 

mention of Prime even though Amazon would automatically charge the chosen payment method 

for Prime after the 30-day free trial expired. See Attachment G, at 5. 

50. After the consumer selected a payment method, the consumer proceeded to a 

UPDP page that required consumers to choose between options to “Start your Prime FREE trial” 

(which continues to enroll the consumer in Prime), and to decline (which avoids a Prime 

membership). See Attachment G, at 6. The options were visually imbalanced, with the sign-up 

option being larger and a brighter color. The page top stated, in large font, “we’re giving you a 

30-day FREE trial of Prime.” Beneath that text, in smaller font, read “After your FREE trial, 

Prime is just $12.99/month.” At the very bottom, in the middle of a block of text in small font, 

was the statement “Your Amazon Prime membership continues until cancelled. If you do not 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

17 
 

 

 

 

 

 

Pti 

.,, 

~angr.litul.Mlon~ 'l'our 10-cl 'I free tml.111 of Prl f! hH rted. ·vou c: n t11nt:Jel nytlm, 

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✓ ~~ 4N 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 18 of 92 

wish to continue for $12.99/month plus any applicable taxes, you may cancel anytime by visiting 

Your Account and adjusting your membership settings.” 

51. Either selection brought the consumer to the final “checkout” page. This page 

displayed the total price of the item(s) in the consumer’s cart. The total did not include the price 

of a Prime membership, even for consumers who reached the checkout page by selecting the free 

shipping button that enrolled them in Prime. See Attachment G, at 7. 

52. If Amazon enrolled the consumer into Prime at any point in the SOSP checkout 

flow, Amazon displayed “[Name], congratulations! Your 30-day free trial of Prime has started. 

You can cancel anytime.” See Attachment G, at 7. The text did not disclose Prime’s price, nor 

did it disclose the monthly auto-renewal. 

53. Amazon discontinued the SOSP checkout version by October 2022, after Amazon 

had received a Civil Investigative Demand (“CID”) from the Commission in March 2021, and a 

second CID in June 2022. 

54. SPC on Desktop. The Single Page Checkout presented consumers with multiple 

Prime upsells, including on the final “checkout” page. Like the SOSP, the SPC upsells did not 

contemporaneously disclose Prime’s price or the fact that the subscription would auto-renew, 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

18 
 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 19 of 92 

and they contained misleading language. If selected, at least one SPC upsell enrolled the 

consumer in Prime, even if the consumer did not complete the online checkout process. 

55. Similar to the SOSP version, the SPC checkout flow began with a page that asked 

the consumer to confirm their billing address, then a page that displayed the different shipping 

options from which consumers chose. See Attachment H, at 3–4. 

56. Like in the SOSP version, the SPC shipping options page emphasized the first 

option—“FREE Same-Day Delivery with a free trial of Amazon Prime.” See Attachment H, at 

4. The SPC also displayed an orange banner above the shipping options, which stated “Good 

news [name], we’re giving you a 30-day FREE trial of Prime.” The page did not disclose 

Prime’s price, nor did it disclose the monthly auto-renewal. 

57. Once a consumer selected a shipping option, the consumer proceeded to the final 

checkout page. See Attachment H, at 5. If the consumer did not select the “shipping option” that 

would enroll them in Prime, Amazon presented additional Prime upsells. For example, Amazon 

sometimes presented a prominent blue box in the center of the page. On the left side of the box, 

Amazon stated, in bold, “[Name], we’d hate for you to miss out on unlimited fast, FREE 

delivery,” and “Save $7.52 on eligible items in this order and enjoy unlimited fast, FREE 

delivery when you try Prime FREE for 30 days.” On the right side of the box, Amazon 

displayed a gray button that read “Try Prime FREE for 30 days,” with “No hassle. No 

commitment. Cancel anytime” underneath. Amazon enrolled consumers who clicked on this 

gray button in Prime, even if those consumers did not complete their purchase. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

19 
 

 

 

 

Teit, we'd hate for yo 11 t:o, mis.5 out on 1.mlimited fast, 

FREE d'eUvery 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 20 of 92 

58. Consumers enrolled in Prime through the SPC if they pressed a prominent button 

labelled “Try Prime FREE for 30 days,” or selected the “Fast FREE Delivery” shipping option. 

The SPC did not include information about Prime’s price or auto-renewal. See Attachment H, 

at 5. 

59. Amazon displayed delivery options underneath the blue box. The first delivery 

option is “FREE Same-Day Delivery with your free trial of Prime.” If a consumer selected this 

option and then clicked on the “Place Your Order” yellow button on the top right side of the 

screen, Amazon enrolled that consumer. See Attachment H, at 5. 

60. Nowhere on this page did Amazon disclose Prime’s price or its monthly autorenewal feature. See Attachment H, at 5. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

20 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 21 of 92 

61. If a consumer selected an option to enroll in Prime, the next page (which the 

consumer needed to get through to complete the product purchase) showed after-the-fact 

disclaimers. First, in the middle of the page, blue text read: “A 30-day FREE trial of Amazon 

Prime has been added to your order. Your order has been upgraded to fast, FREE shipping.” 

Beneath this, in smaller black font, read: “After your free trial, Prime is just $12.99/month. 

Cancel anytime.” Second, on the right, beneath the orange “Place your order” button in small 

font was a block of text that linked to terms and conditions and included the lines: “Your 

Amazon Prime membership continues until cancelled. If you do not wish to continue for 

$12.99/month plus any applicable taxes after your first month, you may cancel anytime by 

visiting Your Account.” See Attachment H, at 6. 

62. Amazon discontinued the SPC in late 2022, after it received a CID from the 

Commission in March 2021, and a second CID in June 2022. 

63. TrueSPC on Desktop. In October 2022, Amazon replaced SPC with a modified 

version of the checkout flow it calls True Single Page Checkout. See Attachments I–K. 

TrueSPC consolidates the checkout flow’s multiple pages onto a single page that includes four 

vertically stacked steps, with the first step (entry or confirmation of the shipping address) at the 

top. Each step corresponds with a page that existed previously in the SPC version of the 

checkout flow. As the consumer completes a step, that step minimizes and the next step expands 

for the consumer to complete. Though Amazon regularly modifies the TrueSPC checkout flow, 

it always includes at least one Prime upsell on the TrueSPC flow after the consumer has entered 

their billing information. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

21 
 

 

 

Test, thank you for being a loyal customer. 

We're giving you Prime FREE for 30 days. 

Rtceiw tllglbl.t ltt!m~ S:aturd:ay, Dae. 17 by 8PM With Prime! 

Delivery details: 

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with FREE Primt: Dt:Uvery on this order. 

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for just S, 14.99/month. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 22 of 92 

64. TrueSPC contains many problematic elements present in the UPDP, SOSP, and 

SPC—including misleading language and other manipulative designs—which lead consumers to 

enroll in Prime without consent. 

65. The TrueSPC checkout experience varies depending on whether the consumer 

already has an Amazon account with saved default billing and shipping information. Compare 

Attachment I with Attachments J and K. 

66. Consumers who already have an Amazon account and have already provided 

billing information must sign in and click a large orange button labelled “Continue” to reach the 

next step. Amazon presents such consumers with a UPDP that interrupts the checkout flow. To 

proceed to the next page in the TrueSPC checkout flow, consumers must either choose the large 

orange “Get FREE Prime Delivery with Prime” button or the “No thanks” link. See Attachment 

I, at 3. Regardless of the consumer’s choice, the consumer then reaches the TrueSPC checkout 

page. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

22 
 

 

Try Prime FREE for 30 days and save $5.99 on this order in both shipping and savings. Cancel anytime. 

After your trb.l. Prime Is only $.14.99/month. 

Mon Prime Benefits 

Fast, FREE delivery on Prime eligible Items 

All the music + top podcasts ad--free on Amazon Mus c 

Prime Video 

rJ Use my gift urd balance, when available, lo pay for Prime. 

Not r~ht now Sign for Prime 

prime 

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By signing up, you acknowledge that you have read and agree to the Amazon Prime Terms and Conditions and authorize us to charge your default paymtnt method (Visa ..... _ 1111) or another avaltable 

paymMt method on file after your 30-day fTee trial Your Amuon Prime membership continues until cancelled. If you do not wish to continue for 514.99/month plus any applicable tu.es. you may 

canttl anytime by visiting Your Account and adjusting your membership settings. For customers In Hawaii, Puerto Ri<o, and Alaska please visit the A~on Prime SMpplng Benefits page to chedc various 

shipping OptlooS, 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 23 of 92 

67. Consumers who have not yet set up an Amazon account see a different version of 

the UPDP. See Attachment K, at 4. 

68. The TrueSPC checkout page involves discrete steps numbered one through four 

on the left and an “Order Summary” box on the right. See Attachment I, at 4. The consumer 

must address all four elements on the left to place an order. 

69. The first element is the shipping address, and the second element is the payment 

method. Consumers who already have an Amazon account can change their shipping address 

and payment method; consumers who do not already have an account must input this 

information. See Attachment I, at 4. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

23 
 

 

 

 

amazon 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 24 of 92 

70. Amazon does not expand the third element, “Offers,” to consumers who do not 

already have an Amazon account, so those consumers skip this element. See Attachment I, at 4. 

71. The fourth element, “Review items and shipping,” summarizes the consumer’s 

cart contents. See Attachment I, at 4. Assuming the consumer did not enroll in Prime via the 

UPDP page, this element also presents two Prime upsells. Amazon has placed the first upsell 

within a large blue banner. On the right side of that blue banner, Amazon has a grey button that 

reads “Get FREE Prime Delivery with Prime,” with “No hassle. No Commitments. 

Cancel Anytime” underneath. On the left side of the blue banner, Amazon states “Free Trial” 

and “we’re giving you Prime FREE for 30 days!” Amazon also includes “Get your Prime 

eligible items for $5.99 FREE,” crossing out the price of shipping without Prime in red. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

24 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 25 of 92 

72. If a consumer clicks on the grey button “Get FREE Prime Delivery with Prime,” 

Amazon replaces the blue banner with a white box and changes the text to: “A 30-day FREE trial 

of Amazon Prime has been added to your order. Your order has been upgraded to fast, FREE 

shipping.” See Attachment I, at 5. In smaller font, the text also reads “After your free trial, 

Prime is just $14.99/month. Cancel anytime.” The consumer can continue their purchase without 

Prime only if the consumer clicks on a small box that displays the “quantity” of Prime 

subscriptions and selects “Delete” instead of “1.” 

73. Amazon placed the second upsell in the delivery options stating “Free Trial” and 

“we’re giving you Prime FREE for 30 days!” See Attachment I, at 4. The first delivery option 

then reads: “FREE Prime Delivery with your free trial of Prime,” with “Fast, FREE Delivery” 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

25 
 

Fil w -·h 

iilfill lig .-

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 26 of 92 

immediately underneath. If a consumer selects this delivery option and then clicks on “Place 

your order and pay,” Amazon enrolls the consumer in Prime. 

74. For those consumers who have not enrolled in Prime, the third element (“Offers”) 

automatically opens after they input their shipping and payment information, and it presents a 

version of the UPDP. See Attachment J, at 7. A list of “Prime Benefits” appears above an 

orange button (“Sign up for Prime”) that adds a membership to the consumer’s order, and a 

smaller white button (“Not right now”) that declines Prime. To continue, the consumer must 

choose one of these options or close the element by clicking a small link in the upper right. See 

Attachment J, at 7. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

26 
 

Offers 

Test, try P1rime .FREE for 30 days and save $5,991 on this order wn both shi1pping and 

savings. Canoe l anyti1me. 

l\fteryo11r tria'L. Prime is only '$1.4 .. 99/montll .. 

More Prime B·eneiits 

F,as,t, FREE. dcliirory on P'fime ell9lblc Items lnclud d 

In lu<f d 

Prime Video lntlu cl 

l'J Use my gift card ba la ll()e, wt.en available. to pay for Prime .. 

Sig for Prime 

By sign n9 up, you acknowtod'go ~h<at you haYe mad and 9rnc to tt1e ma.z.011 Prim Terms nd Cond ons and 

a1.1 h.orlze us to ch rge your def ult paymem metliod (' ,sa ""·002.6) or nother a1vcail b~!! pay ent method on 

file after your 30-d.i.y free tri l. You~ Amazon, Prime memlm-sliii'p continues until cancelled. lfyo11 do not wish 

to continue roT $14,.99/mtmtlii p'h1sany applicable taxes,, you, may cancel anytime b:,"·..,i~tlng Vo11ff .Acrnu m: 

andl adj,l.15ti111g1 yauie membership settings, iJ;a:rcustorner:s i111 Hawai~ Puerto Rico, alld Alaska please visit ttie 

Amazon Prime Shipping Benefits page to check varlou'S shipping options.. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 27 of 92 

75. Amazon immediately enrolls consumers who select the orange “Sign up for 

Prime.” See Attachment K, at 5. 

76. If the consumer moves past the third element without enrolling, Amazon presents 

Prime again as part of the fourth element (“Items and shipping”). See Attachment J, at 8. This 

element enables the consumer to adjust the quantity of items in the cart. Amazon also presents 

Prime three additional times within this fourth element: a button (“Get FREE One-Day Delivery 

with Prime”), a shipping option selection choice (“FREE One-Day Delivery with your free trial 

of Amazon Prime”), and a hyperlink (“join now”). Consumers who have still not added a Prime 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

27 
 

 

4 Review items and shi pping 

Test, we're giving you Prime FRIE for 30 

days! 

~ FREE One-Day Deli\'ery with Prime > 

Q No hassle. No co.mmm'nents. Ca ncel 

Get your Prime eligible items '4011d11y, Bee:. 19 ~y 8Pt4 

Tomorrow, Dec. 1S by 8PM for -$S,9g FR 

ao ,me. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 28 of 92 

membership to their order at this point can click a large orange “Place your order” box to 

complete their checkout. See Attachment J, at 8. 

77. Since at least 2018, Prime upsells on the mobile checkout flow have mirrored 

those on desktop checkout, and have included the SOSP, UPDP, and the SPC. 

78. Navigating Prime upsells on mobile devices is more difficult than on a desktop. 

Amazon often places material terms such as price and auto-renewal terms at the very bottom of 

the mobile page—past the point viewable on the screen unless the consumer scrolls down— 

where consumers are least likely to see this information. On mobile devices, consumers are also 

more likely to select a prominent option without scrutinizing fine print. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

28 
 

 

amaion _ , 

Choose your snipping options 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 29 of 92 

79. Mobile (Past). The mobile Shipping Option Select Page contained similar 

problematic elements to the desktop SOSP, including the pre-selection of a fast-shipping option 

that would enroll consumers in Prime and a belated, inconspicuous disclosure of the terms of 

Prime membership. 

80. The mobile SOSP (like the desktop SOSP) began with the “shipping option” 

selection page. The first, pre-selected option was “FREE Same-Day Delivery with Amazon 

Prime.” Three other shipping options, which were not preselected and would not enroll the 

consumer in Prime, are further below. See Attachment L, at 4. 

81. After clicking “Continue,” the consumer proceeded to “payment method” pages 

to select the payment method. See Attachment L, at 5-6. As on desktop, the “payment method” 

page did not mention Prime, even though Amazon will charge this payment method for Prime. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

29 
 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 30 of 92 

82. After selecting payment information, the consumer proceeded to a UPDP page 

that stated at the top: “[Name], we’re giving you 30 days of Prime for $12.99 FREE.” See 

Attachment L, at 7. The mobile page then listed several “shopping benefits” (e.g., “Prime 

Delivery” and “Exclusive Deals”) and “entertainment benefits” (e.g., “Prime Video” and “Prime 

Music”). Below these Prime benefits was a yellow button, “Start your Prime FREE trial,” with 

black text beneath it, “Don’t worry, cancel anytime.” The yellow button enrolled the consumer 

in Prime. Below that was a white button: “No Thanks,” which declined Prime. To this point on 

the screen (and prior screens), Amazon had not disclosed that Prime will auto-renew once the 

free trial expired, or that it costs $12.99 per month. 

83. Finally, beneath “No Thanks,” located within terms and conditions were Prime’s 

auto-renewal terms and monthly cost. To view this text, many consumers would need to scroll 

down on their mobile device. See Attachment L, at 7. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

30 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 31 of 92 

84. If the consumer selected “Start your Prime FREE trial,” Amazon enrolled the 

consumer in Prime and took the consumer to the final “checkout” page. Text toward the top of 

the page read: “Congratulations, your Prime free trial has started!” The page did not state 

Prime’s price or that the subscription would auto-renew. At this point, even if the consumer 

abandoned the cart without completing checkout, Amazon still enrolled them in Prime. There 

was no option on the “checkout” page for the consumer to cancel or undo their Prime 

subscription. See Attachment L, at 8. 

85. The Universal Prime Decision Page on mobile devices contained similar 

problematic elements as the UPDP on desktop. 

86. The UPDP on mobile (like the desktop version) required consumers to either 

accept or decline a Prime subscription before allowing them to continue shopping. See 

Attachment M. The mobile UPDP failed to make clear that the consumer would enroll in Prime 

by selecting “Get FREE two-day shipping.” The mobile UPDP disclosed some terms, but only 

at the bottom of the screen in a block of small print text, which stated “If you do not wish to 

continue for $12.99/month plus any applicable taxes, you may cancel anytime by visiting Your 

Account and adjusting your membership settings.” 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

31 
 

 

 

amazon __ ,_ QgescpqHnb, we are giving you a 30-day 

free trial of Amazon Prime. Save S5.99 

with FREE Two-Day Shipping on this 

order. 

Delivery Speed 

Same-Day Delivery (in select cities) 

One-Day Shipping (in select cities) 

Two-Day Shipping 

No minimum order threshold 

for FREE Two-Day Shipping 

Get FREE Two-Day Shipping 

prime ____ .., 

FREE 

FREE 

FREE 

No thanks, I do not want FREE Two-Day 

Shipping 

By signing up, you acknowledge that you have read and 

agree to the Amazon Prime Terms and Conditions and 

authorize us to charge your credit card (Visa ····-0988) 

or another available credit card on file after your 30-day 

free trial. Your Amazon Prime membership continues 

until cancelled. If you do not wish to continue for 

$12.99/month plus any applicable taxes, you may 

cancel anytime by visiting Your Account and adjusting 

your membership settings. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 32 of 92 

87. The Single Page Checkout on mobile also contained similar problematic elements 

as SPC on desktop. 

88. Mobile SPC, like mobile SOSP, began with a “shipping options” page that 

included an option for “FREE Two-Day Delivery with Amazon Prime,” and several other nonPrime shipping options. See Attachment N, at 3-4. The consumer then enters payment 

information. See Attachment N, at 5-6. 

89. If the consumer selected one of the non-Prime shipping options (and after 

selecting a payment method), the consumer proceeded to the checkout page and encountered two 

Prime upsells. First, consumers could enroll in Prime if they selected “Try Prime FREE . . . 

we’re giving you a 30-day FREE trial of Amazon Prime. No commitments, cancel anytime.” 

See Attachment N, at 7. Second, under “Shipment details,” consumers could select (among 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

32 
 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 33 of 92 

other, non-Prime options) “FREE Same-Day Delivery with your free trial of Prime. Fast FREE 

Delivery.” The page does not disclose Prime’s price or its auto-renewal feature. 

90. If the consumer selected the option for a Prime free trial, the consumer proceeded 

to an updated version of the checkout page that read: “[Name], your Prime FREE 30-day trial 

has been added below,” and in smaller font below stated Prime’s price and auto-renewal feature. 

See Attachment N, at 8. Further below, Amazon added Prime to the consumer’s cart for 

purchase, listing the price of the free trial as $0.00 and the “quantity” as “1.” To remove Prime 

from the purchase, the consumer needed to select the dropdown menu and change the product 

quantity from “1” to “0.” 

91. Mobile (Current). In 2022, Amazon modified the mobile checkout enrollment 

flow. 

92. The current mobile upsells contain many of the same problematic elements as the 

prior mobile upsells—including misleading language and manipulative designs—which lead 

consumers to enroll in Prime without their consent. 

93. Consumers using mobile devices to navigate to Amazon.com can select a product 

by clicking a large yellow button (“Add to Cart”), and continue shopping, or a large orange 

button (“Buy Now”) to proceed directly to the checkout. See Attachment O, at 1. Consumers 

who continue shopping add additional products to their cart by clicking the large yellow “Add to 

Cart” button, until they finish and choose another large yellow button (“Proceed to checkout”), 

which takes the consumer to the next step. See Attachment O, at 2. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

33 
 

 

ama.zon 

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Salil! S5.99 , m ntl!,' en th llrffi!r 

-

" 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 34 of 92 

94. At this point, the consumer signs in (if the consumer has not already) and clicks a 

large yellow “Continue” button to proceed to a mobile UPDP. Consumers who have already 

signed in proceed directly to the mobile UPDP. 

95. Consumers without an account must create one before reaching the mobile UPDP. 

Creating an account involves four steps: entering an email address, creating a password, and 

adding an address and a payment method. See Attachment O, at 3-4. Completing these steps 

takes the consumer to the mobile UPDP. 

96. When a consumer reaches the mobile UPDP, Amazon divides the page, with a 

footer (sometimes known as a “sticky footer”) that occupies the screen’s bottom half, rendering 

only a portion of the top half visible unless the consumer scrolls down. See Attachment O, at 5. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

34 
 

 

 

 

et F 

s 5..99 

el.N ry - me 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 35 of 92 

97. At the top of the mobile UPDP, Amazon informs the consumer that “we’re giving 

you 30 days of Prime for FREE.” See Attachment O, at 5. Smaller text below reads: “After 

your FREE trial, Prime is just $14.99/month,” but does not reference Prime’s auto-renewal 

feature. Consumers can view this section without scrolling. 

98. The sticky footer on the lower half of the screen contains double-stacked buttons: 

the top yellow “Get FREE Two-Day Delivery with Prime” button and an image appearing to be a 

gray lower button labelled “Save $5.99 instantly on this order.” See Attachment O, at 5. 

Amazon enrolls consumers who click the yellow button in Prime. As such, a consumer can 

enroll in Prime without viewing the portion of the page that the sticky footer hides. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

35 
 

 

 

- 30 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 36 of 92 

99. If a consumer scrolls down, Amazon shows consumers a table comparing the 

“Perks of Prime” with “Without Prime.” See Attachment O, at 5. For instance, perks of Prime 

include “Fast, FREE delivery on Prime eligible items,” “[a]ll the music + top podcasts ad-free on 

Amazon Music,” and “Prime Video – Enjoy award-winning Amazon Originals, movies and TV 

shows” whereas without Prime, a consumer has “[m]inimum order requirements,” “[m]usic 

listening with ads,” and Prime Video “[n]ot included.” 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

36 
 

Minimum order 

requirements 

Fast, FREE delivery on 

Prime eligible items 

Music listening with ads 

All the music + top podcasts 

ad-free on Amazon Music 

Not included 

fi Prime Video - Enjoy awardwinning Amazon Originals, 

movies and TV shows 

Use my gift card balance, when available, 

to pay for Prime. 

Get FREE Two-Day Delivery with Prime 

Save $5.99 instantly on this order 

No thanks 

By signing up, you acknowledge that you have read 

and agree to the Amazon Prime Terms and 

Conditions and authorize us to charge your default 

payment method (Visa '"'-3947) or another 

available payment method on file after your 30-day 

free trial. Your Amazon Prime membership 

continues until cancelled. If you do not wish to 

continue for $14.99/month plus any applicable 

taxes, you may cancel anytime by visiting Your 

Account and adjusting your membership settings. 

For customers in Hawaii, Puerto Rico, and Alaska 

please visit the Amazon Prime Shippinq Benefits 

i amazon.com 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 37 of 92 

100. The following text is visible at the bottom of the sticky footer, in the smallest type 

on the screen: “By signing up, you acknowledge that you have read and agree to the Amazon 

Prime Terms and . . . See all.” See Attachment O, at 5. If the consumer continues scrolling, 

additional information about Prime’s “Terms and Conditions” and “Shipping Benefits” becomes 

visible in small text beneath the “No thanks” link. A sentence in the middle of this additional 

text reads: “Your Amazon Prime membership continues until cancelled. If you do not wish to 

continue for $14.99/month plus any applicable taxes, you may cancel anytime by visiting Your 

Account and adjusting your membership settings.” 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

37 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 38 of 92 

101. If a consumer clicks the downward arrow on the top right of the sticky footer, 

Amazon also reveals the additional text beneath the “No thanks” link. The arrow is adjacent to 

the yellow “Get Free Two-Day Delivery with Prime” button that will enroll the consumer in 

Prime. If a consumer clicks the button while attempting to click the adjacent sticky footer arrow, 

Amazon enrolls the consumer in Prime. 

102. Consumers cannot view the full text beneath the “No thanks” link without 

scrolling or clicking the sticky footer arrow. However, consumers can enroll in Prime by 

selecting the large yellow “Get FREE Two-Day Delivery with Prime” button without scrolling. 

See Attachment O, at 5. 

103. Consumers can proceed with their purchase if they select either the yellow button 

or the blue “No thanks” link. See Attachment O, at 5. 

104. If the consumer selects the yellow “Get FREE Two-Day Delivery with Prime” 

button, Amazon brings the consumer to a final page with a yellow “Place your order” button and 

“Congratulations, your Prime free trial has started! We’ll email you about all Prime benefits” 

underneath. Therefore, Amazon enrolls the consumer in Prime before the consumer has even 

placed the order. The final page of the flow also contains an “Order Total” that does not include 

Prime’s price. See Attachment O, at 6. 

AMENDED COMPLAINT 

Case No. 2:23-cv-0932-JHC 

38 

Federal Trade Commission 

600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 
 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 39 of 92 

105. On this final page, the consumer can change or confirm shipping and billing 

information, remove products from the cart, and make other changes such as adding gift receipts 

or providing delivery instructions. See Attachment O, at 6. The consumer can also select a 

shipping method. 

106. The yellow button labelled “Place your Order” allows consumers to make their 

purchase. See Attachment O, at 6. Prime’s price and auto-renewal feature do not appear on the 

page, the consumer cannot remove Prime, and the consumer cannot back up and choose “No 

thanks” to Prime on the prior page. 

107. In each pathway (UPDP, SOSP, SPC, TrueSPC, and mobile), Amazon fails to 

provide clear and conspicuous disclosures regarding the Prime subscription program’s material 

terms: its price, and the fact that it renews automatically unless the consumer affirmatively 

cancels. Furthermore, in each pathway (UPDP, SOSP, SPC, TrueSPC, and mobile), Amazon 

does not provide any disclosures at all before Amazon collects billing information from 

consumers. 

108. Prime Video. Prime Video is a distinct product from Prime. Specifically, Prime 

Video is a subscription-based video streaming service. Although it is possible to sign up for 

Prime Video alone, it is difficult to do so. 

109. Amazon’s webpage tricked consumers into signing up for Prime instead of Prime 

Video, which would be a lower-cost option. 

110. In particular, Amazon initially offers Prime Video as part of the full, more 

expensive Prime package to consumers who reach the Prime Video homepage (or “storefront”) 

to enroll in Prime Video. See Attachment P, at 1. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

39 
 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 40 of 92 

111. Capitalizing on some consumers’ inability to appreciate the difference between 

“Prime” and “Prime Video,” the Prime Video enrollment process fails to clarify Amazon will 

enroll them in Prime rather than the less expensive Prime Video, on both desktop and mobile 

platforms. This causes some consumers to enroll in Prime, rather than Prime Video, 

unknowingly. 

112. Consumers can reach the Prime Video storefront through various ways, including 

by searching “Prime Video” in an online search engine or the Amazon search bar. 

113. The initial Prime Video storefront displays the Prime Video logo at the top and an 

orange button labelled “Watch with Prime. Start your 30-day free trial.” See Attachments P and 

V. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

40 
 

 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 41 of 92 

114. Amazon brings consumers who press the orange button to a second page and 

prompts them to sign in (if they have an Amazon account) to confirm billing information, or to 

create an account and submit billing information. This page also contains small print links to the 

Amazon Prime Conditions of Use and Privacy Notice at the bottom of the page. See Attachment 

V, at 2-5. 

115. Amazon does not, to this point, present the consumer with any marketing 

regarding Prime, as opposed to Prime Video. 

116. After sign in or account creation, Amazon brings consumers to a page containing, 

from top to bottom: 

(a) the Prime logo with “Watch now, cancel anytime. Start your 30-day free 

trial”; 

(b) the email associated with the account; 

(c) a table with “Confirm your details” at the top followed by the plan type, 

which is “Prime. Enjoy unlimited streaming of thousands of movies and TV 

shows plus FREE Two-Day Delivery on millions of items. $14.99/month after 

trial” (to get Prime Video rather than Prime, the consumer must click a gray 

“change” box to the right); 

(d) the consumer’s email, payment method, and billing address; 

(e) at the bottom, “By signing up, you acknowledge that you have read and 

agree to the Amazon Prime Terms and Conditions and authorize us to charge your 

preferred card or another available credit card on file after your 30-day free trial. 

Your Prime membership continues until cancelled. If you don’t want to continue 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

41 
 

 

Start you r 30-day free tri al 

Confirm your deta i Is 

fnldil 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 42 of 92 

for $14.99/month plus any applicable taxes, you may cancel anytime by visiting 

Your Account and adjusting your membership settings;” and 

(f) an orange button in the bottom right corner, labelled “Start your free trial.” 

The button sits immediately above a gray area with text reading “Change or 

cancel plan anytime. Pay later.” See Attachment P, at 2 and Attachment V, at 6. 

117. To enroll in Prime Video (instead of Prime), the consumer must click on the 

“Change” button for the Plan information toward the top of the page, change the plan on the 

subsequent page, and then navigate back to confirm the Prime Video selection. See Attachment 

P, at 2 and Attachment V, at 6. 

118. Until recently, when the customer clicked the “Start your free trial” button, 

Amazon enrolled the customer in Prime—not Prime Video—but then immediately took the 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

42 
 

 

IOdtJided with Prime 

► W.ttchnow C> + L........o 

• ~•d the book lh.lt il'!lpir~ th~ mc:J"llic! 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 43 of 92 

customer to the Prime Video storefront page, where the customer can select the “Watch now” 

button to begin a movie. See Attachment P, at 3. Above the “Watch Now” button, Amazon 

included “Prime” and “Included with Prime.” 

119. After receiving the June 30, 2022 CID, Amazon changed the Prime Video 

enrollment flow for Prime. Now, when consumers click “Start your free trial” Amazon shows at 

least some consumers a page titled “Welcome to Prime, [name]” that describes certain Prime 

membership services. On this page, there is no option to cancel the Prime membership. Toward 

the bottom are two buttons: on the left “Discover Prime benefits” (gray button) takes consumers 

to an overview of Prime-related services, and on the right “OK” (blue button) continues to the 

Prime Video storefront. See Attachment V, at 7-8. 

120. Prime Video (Mobile). Consumers may also enroll in Prime through Prime 

Video on a mobile device. 

121. Like Prime Video on desktop, Prime Video on mobile tricked consumers into 

signing up for Prime instead of Prime Video, which would be a lower-cost option. 

122. Like desktop Prime Video, the Prime Video mobile storefront displays the Prime 

Video logo at the top and, toward the bottom of the page, an orange button labelled “Watch with 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 44 of 92 

Prime. Start your 30-day free trial.” Above the orange button, in blue text, reads “Prime” and 

then, in white text, “Watch for $0.00 with Prime.” See Attachment U, at 1. 

123. Amazon brings consumers who press the orange button to a “Welcome” page to 

sign in (if they have an Amazon account) to confirm billing information, or to create an account 

and submit billing information. The page also contains links to “Amazon’s Conditions of Use 

and Privacy Notice.” See Attachment U, at 2. 

124. After sign in or account creation, Amazon then brings consumers to a page that 

asks consumers to “Confirm your details,” and includes the following information from top to 

bottom: 

(a) Next to “Plan” reads: “Prime. Enjoy unlimited streaming of thousands of 

movies and TV shows plus FREE Two-Day Delivery on millions of items. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

44 
 

prime -~ 

Confirm your details 

Piao 

tm:;1il 

BiUing 

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Enjay ul'l-im,ted stream ng of 

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shows l]lJs l'!lEE Two-Ody 

D li•.tery on millt:Jns of items. 

($14.93/n,011,r.attor tM II 

be used w.-.er1 a·,.adat,&eJ 

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By sigl)ing u.D. you acknowledge tra;; you have read 

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onO ~uthO<itt u, to eh•~ 'fOIJI ll'tfen-ed ar'd or 

another ~ita.nle cred t card on fie after :;our 30-day 

free trial Your Prime mernbersMp continues until 

c~ncelLed. If you don"t want to continue for 

i 14.99/ month plus any appilcsble ta""- you may 

cancel anytime by ol,ltlng Your A,;count aoo 

adjustifl!i' :,-our mem~rstiip setti"'\)S, 

Change 01 c¥1cel r;,lcn ariyome 

Pily1"1.c:-r 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 45 of 92 

($14.99/month after trial).” Next to this text is an arrow similar to a greater-than 

sign (“>”). 

(b) The page also lists consumer’s email, payment method, and billing address 

information. 

(c) There is then a link to Amazon Prime terms and conditions, as well as 

Prime’s price and auto-renewal feature. 

(d) Toward the bottom is an orange button “Start your free trial” with black 

text beneath: “Change or cancel plan anytime. Pay later.” See Attachment U, at 5. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

45 
 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 46 of 92 

125. To enroll in Prime Video (instead of Prime), the consumer must click on the 

“Plan” information toward the top of the page, change the plan on the subsequent page, and then 

navigate back to confirm the Prime Video selection. 

126. If the consumer simply clicks the orange “Start your free trial” button, Amazon 

enrolls the consumer in Prime—not Prime Video—but then immediately takes the consumer to 

the Prime Video storefront page. See Attachment U, at 6. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

46 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 47 of 92 

Prime’s Four-Page, Six-Click, Fifteen-Option Iliad Cancellation Process 

127. Under substantial pressure from the Commission, Amazon changed its Iliad 

cancellation process in or about April 2023, shortly before the filing of the Complaint. Prior to 

that point, there were only two ways to cancel a Prime subscription through Amazon: a) through 

the online labyrinthine cancellation flow known as the “Iliad Flow” on desktop and mobile 

devices; or b) by contacting customer service. 

128. The Iliad Flow required consumers intending to cancel to navigate a four-page, 

six-click, fifteen-option cancellation process. In contrast, customers could enroll in Prime with 

one or two clicks. 

129. Although consumers may have enrolled in Prime through devices other than 

computers and smartphones, such as through the Prime Video application on the Amazon 

FireStick and Fire TV, they could not cancel via these same technologies. Instead, they had to 

use the Iliad Flow or call customer service. 

130. Amazon launched the Iliad Flow in 2016, and did not substantially change it in 

the United States until in or about April 2023. 

131. To cancel via the Iliad Flow, a consumer had to first locate it, which Amazon 

made difficult. Consumers could access the Iliad Flow from Amazon.com by navigating to the 

Prime Central page, which consumers could reach by selecting the “Account & Lists” dropdown 

menu, reviewing the third column of dropdown links Amazon presented, and selecting the 

eleventh option in the third column (“Prime Membership”). This took the consumer to the Prime 

Central Page. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

47 
 

 

-~~ 

Monthly $74.99 

!l°l!""IP~ 

September 2. 2022 

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Exclusive de.als for Prime members See more w 

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Share your oeneftts 

Remind me before renewing 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 48 of 92 

132. Once the consumer reached Prime Central, the consumer had to click on the 

“Manage Membership” button to access the dropdown menu. That revealed three options. The 

first two were “Share your benefits” (to add household members to Prime) and “Remind me 

before renewing” (Amazon then sent the consumer an email reminder before the next charge). 

See Attachment Q, at 1-2. 

133. The last option was “End Membership.” The “End Membership” button did not 

end membership. Rather, it took the consumer to the Iliad Flow. See Attachment Q, at 2-3. It 

was impossible to reach the Iliad Flow from Amazon.com in fewer than two clicks. 

134. Consumers could also reach the Iliad Flow by contacting customer service, asking 

to cancel, and receiving a link to the Iliad Flow. Amazon required customer service 

representatives to encourage consumers seeking to cancel to do so via the Iliad Flow. 

135. Consumers could also reach the Iliad Flow from Amazon.com by typing “cancel 

membership” in the search bar. This produced an “Alexa” answer that included an “End Your 

Amazon Prime Membership” link. See Attachment T, at 2. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

48 
 

!rship 1

• 

0 ALEXA'S ANSWER 

How to concel membership? 

To ca ncel your Prime membership, visit End Your Amazon Prime Membership, then select End Membership. Paid members who haven't 

used their benefits are el igible for a full refund of the current membership period. 

Shipping and Delive ry > Amazon Prime > 

End You r Amazon Prime Membership 

You can end your Prime membership by selecting the End Membership button on 

this page. 

Pa id members who haven't used th eir benefits are eligible fo r a fuU 

refund of the rurrent membership period. We'll process. the refu nd in 

three t o five business days. 

End Your· Prirne Membershi p 

• Additional subscriptions tied to your member.ihip won't renew once your Prime 

mem bership ends. 

• If your Prime membe rsh ip 1s associated with a service you recerve through an other 

company (such as Sp rint), cont act that comp.any to managf! you r Prime me mbership. 

• Customers who sign up fo r Amazon Prime using the Android mobile shopping app must 

manage t he ir subscription through Google Subscription services. 

To end yo ur Amazon Prime member:ship: 

1. Go to your Prime membership. 

2.. Se lect Up da t e, C.1: nce l, ;;md mo re , and f ollow the on-~c reen inst ructions. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 49 of 92 

136. Clicking the link did not end Prime membership. Instead, it took the consumer to 

another page with a heading that read: “End Your Amazon Prime Membership.” The page 

contained a button labelled “End Your Prime Membership.” Pressing the button did not end 

Prime Membership. Instead, it took the consumer to the Iliad Flow. See Attachment T, at 3-4. 

137. The search bar pathway to the Iliad Flow varied somewhat depending on what 

search the consumer ran. For instance, searching “how to turn off Prime,” or “cancel prime” 

(rather than “how to cancel Prime”) took the consumer to a page with a link to Prime Central, 

from which the consumer had to then locate the path to the Iliad Flow. Searching “End 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 50 of 92 

Membership” took the consumer to a page with three blue links under the heading “Closing your 

Amazon account,” and a subheading “Get information on how to close your Amazon account.” 

The middle link was “cancel membership.” Clicking “cancel membership” did not cancel 

membership. Instead, it took the consumer to the Iliad Flow. 

138. Typing “cancel membership” in the search bar on a mobile device brought the 

consumer to the Iliad Flow through similar steps. See Attachment S. 

139. Thus, to reach the Iliad Flow, consumers had to do one of the following: 1) 

contact customer service and inform a customer service agent that they wanted to cancel and 

click the cancellation link the customer service agent provides; 2) navigate from Amazon.com to 

the Prime account management page (Prime Central), locate the “manage membership” 

dropdown, and press a button labelled “End Membership”; or 3) search “How to cancel 

membership” in the Amazon search bar, then move through subsequent steps to reach the Iliad 

Flow—frequently, selecting a link reading “End Your Amazon Prime Membership” and then 

pressing a button reading “End Your Prime Membership.” 

140. Once consumers reached the Iliad Flow, they had to proceed through its 

entirety—spanning three pages, each of which presented consumers several options, beyond the 

Prime Central page—to cancel Prime. See Attachment Q. 

141. On the first page of the Iliad Flow, Amazon forced consumers to “[t]ake a look 

back at [their] journey with Prime” and presented them with a summary showing the Prime 

services they used. Amazon also displayed marketing material on Prime services, such as Prime 

Delivery, Prime Video, and Amazon Music Prime. Amazon placed a link for each service and 

encouraged consumers to access them immediately, i.e., “Start shopping today’s deals!”, “You 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 51 of 92 

can start watching videos by clicking here!”, and “Start listening now!” See Attachment Q, at 3. 

Clicking on any of these options took the consumer out of the Iliad Flow. 

142. Also, on page one of the Iliad Flow, Amazon presented consumers with three 

buttons at the bottom. “Remind Me Later,” the button on the left, sent the consumer a reminder 

three days before their Prime membership renews (an option Amazon had already presented the 

consumer once before, in the “Manage Membership” pull-down menu through which the 

consumer entered the Iliad Flow). The “Remind Me Later” button took the consumer out of the 

Iliad Flow without cancelling Prime. “Keep My Benefits,” on the right, also took the consumer 

out of the Iliad Flow without cancelling Prime. Finally, “Continue to Cancel,” in the middle, 

also did not cancel Prime but instead proceeded to the second page of the Iliad Flow. See 

Attachment Q, at 3. Therefore, consumers could not cancel their Prime subscription on the first 

page of the Iliad Flow. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

51 
 

 

 

 

Get all the benefits of Prime for less 

We'd like to offer you the chance o enjoy all the benefits of Prime for only 

$139/year. 

Are you rtudont? 

Hdve a11 EBT card/recei, govemment 5Sinance? 

Items tied to your Prime membership w·u be affected if you c c l your membership. 

1. By ca celling, you will no longer ligible for your uncl imet:I Prime uclusive offers. 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 52 of 92 

143. On the second page of the Iliad Flow, Amazon presented consumers with 

alternative or discounted pricing, such as the option to switch from monthly to annual payments 

(and vice-versa), student discounts, and discounts for individuals with EBT cards or who receive 

government assistance. Amazon emphasized the option to switch from monthly to annual 

payments by stating the amount a consumer would save at the top of this page in bold. Clicking 

the orange button (“Switch to annual payments”) or the links beneath took the consumer out of 

the Iliad Flow without cancelling. See Attachment Q, at 4. 

144. Right above these alternatives, Amazon stated “Items tied to your Prime 

membership will be affected if you cancel your membership,” positioned next to a warning icon. 

See Attachment Q, at 4. 

145. Amazon also warned consumers that “[b]y cancelling, you will no longer be 

eligible for your unclaimed Prime exclusive offers,” and hyperlinked to the Prime exclusive 

offers. See Attachment Q, at 4. Clicking this link took the consumer out of the Iliad Flow 

without cancelling. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

52 
 

 

 

 

 

 

Vou ul ing: 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 53 of 92 

146. Finally, at the bottom of Iliad Flow page two, Amazon presented consumers with 

buttons offering the same three options as the first page: “Remind Me Later,” “Continue to 

Cancel,” and “Keep My Membership” (labelled “Keep My Benefits” on the first page). See 

Attachment Q, at 4. Once again, consumers could not cancel their Prime subscription on the 

second page of the Iliad Flow. Choosing either “Remind Me Later” or “Keep My Membership” 

took the consumer out of the Iliad Flow without cancelling. Consumers had to click “Continue 

to Cancel” to access the third page of the Iliad Flow. 

147. On the third page of the Iliad Flow, Amazon showed consumers five different 

options, only one of which, “End Now”—presented last, at the bottom of the page— 

immediately cancelled a consumer’s Prime membership. See Attachment Q. Pressing any of the 

first four buttons took the consumer out of the Iliad Flow without immediately cancelling. 

148. On the third page of the Iliad Flow, the first and second options—“Remind Me 

Later” and “Keep My Membership”—were substantially identical to the buttons on the Iliad 

Flow’s first two pages. Therefore, Amazon forced consumers who reach the Iliad Flow’s last 

page to view the “Remind Me Later” option four times (including once to enter the Iliad Flow) 

and the “Keep My Membership” option three times. See Attachment Q, at 5. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

53 
 

 

 

 

aus yo1J Prime m m 511ip: 

to yo-,.- rime mcmben ip d rf au u e your m mbe hip. 

II flQlon lllf~ 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 54 of 92 

149. The third option, “Pause on [date],” would “pause” or put on hold—but not 

cancel—a consumer’s Prime membership. Amazon did not charge “paused” members for Prime 

but made it simple for “paused” members to re-join Prime through a single “quick-resume” click. 

Amazon presented the “pause” option adjacent to a warning icon and text stating that, “[b]y 

pausing, [consumers] will no longer be eligible for [their] unclaimed Prime exclusive offers,” 

and provided links to “Prime exclusive offers” (which if clicked exit the Iliad Flow without 

canceling). See Attachment Q, at 5. 

150. Amazon regularly sent promotional materials to “paused” members to encourage 

them to un-pause Prime with a single click. 

151. Above the fourth and fifth options—the “End on [date]” and “End Now” 

options—Amazon also added a warning icon and text that states “[b]y cancelling, [consumers] 

will no longer be eligible for [their] unclaimed Prime exclusive offers.” See Attachment Q, at 5. 

152. The fourth option, “End on [date],” turned off Prime’s auto-renew feature. It did 

not immediately cancel the consumer’s membership. Instead, the membership would end when 

the current billing cycle concluded, and the consumer would not receive a refund. See 

Attachment Q, at 5. 

AMENDED COMPLAINT 

Case No. 2:23-cv-0932-JHC 

54 

Federal Trade Commission 

600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 
 

 

 

Ca -eel yo Prime --m -ushlp: 

1 s ie rP e lP 

End 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 55 of 92 

153. The fifth and final option, “End Now,” immediately cancelled a consumer’s 

Prime membership (and Amazon refunded a pro-rated amount for the balance of the billing 

cycle). Thus, only one of the five options presented immediately cancelled a consumer’s Prime 

membership. See Attachment Q, at 5. 

154. Therefore, to complete the Iliad Flow and cancel a Prime membership, the 

consumer needed to click a minimum of six times from Amazon.com: Prime Central 

“Manage Membership”  “End Membership”  “Continue to Cancel”  “Continue to Cancel” 

 “End Now.” See Attachment Q. 

155. Amazon limited refunds available through the Iliad Flow to one monthly charge, 

although Amazon did not disclose this to subscribers entering the flow. Consequently, a 

Nonconsensual Enrollee who discovered Prime charges after a few months could not obtain a 

full refund online. In contrast, a consumer who called customer support and was not redirected 

to the Iliad Flow could obtain a greater refund because customer service representatives have 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

55 
 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 56 of 92 

discretion to provide one (for instance, if a consumer complains about Nonconsensual 

Enrollment). 

156. The Iliad Flow was also accessible through a mobile device. Similar to the Iliad 

Flow on desktop, the Iliad Flow on mobile was also difficult for consumers to locate and 

presented a complex array of options across multiple pages. Cancelling via the Iliad Flow on a 

mobile device was an eight-page, eight-click minimum process. 

157. On a mobile device, a consumer entered the Iliad Flow by 1) tapping on “My 

Account,” 2) selecting “Manage Prime Membership” from a dropdown menu on the second 

page, 3) selecting “Manage membership” on the third page, 4) selecting “Manage membership” 

on the fourth page, and 5) selecting “End my Membership” on the fifth page. See Attachment R, 

at 1-5. 

158. On the sixth page, the consumer seeking to cancel began the mobile equivalent of 

the Iliad Flow. Specifically, on this page, Amazon presented benefits information similar to the 

desktop Iliad Flow, and stated at the top of the page “[Name], thank you for being a member 

with us. Take a look back at your journey with Prime.” See Attachment R, at 6. Amazon 

included the same three options—“Keep My Benefits,” “Continue to Cancel,” and “Remind Me 

Later”—although consumers had to scroll down to view them. None of these options ended the 

Prime membership. Consumers who selected “Continue to Cancel” proceeded to a seventh page. 

See Attachment R, at 6. 

159. On the seventh page, Amazon presented alternate payment options similar to 

those in the desktop Iliad Flow: Amazon placed the three options at the bottom of the page in 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

56 
 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 57 of 92 

the same order. See Attachment R, at 7. Pressing “Continue to Cancel” did not end the 

membership. It took the consumer to an eighth and final page. See Attachment R, at 7. 

160. On the eighth and final page, Amazon presented five buttons. The first three were 

“Pause on [date],” “Keep My Membership,” and “Remind Me Later.” The consumer had to 

scroll down to view the fourth and fifth. The fourth (“End on [date]”) turned off auto-renew, but 

did not immediately cancel, and consumers who chose this option did not receive a refund. Only 

the fifth and final button (“End Now”) immediately cancelled the membership. Amazon 

refunded consumers who pressed this button a pro-rated amount for the balance of the monthly 

billing cycle. See Attachment R, at 8. 

161. Amazon designed the Iliad Flow (both desktop and mobile) to inform consumers 

about a) Prime benefits they would lose by cancelling Prime, and b) alternative payment methods 

available to them to keep Prime. 

162. Amazon did not design the Iliad Flow to be simple or easy for consumers. The 

Iliad Flow inhibits or prevents many consumers who intend to cancel from cancelling their 

membership. 

163. Amazon measured the Iliad Flow’s success based on the number of Prime 

cancellations it prevented. In 2020, of subscribers who clicked on “End Membership” to 

enter the Iliad Flow did not cancel. of those Prime subscribers who 

entered the Iliad Flow but failed to cancel subsequently used no Prime services within the next 

thirty days. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

57 
 

 

 

 

 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 58 of 92 

 for the Prime Enrollment Flow 

164. Although consumers can enroll in Prime through many entry points, a majority of 

prospective Prime members begin subscriptions by enrolling in free trials that Amazon offers 

during its ecommerce shopping checkout process. Because these trial memberships are the 

principal way that Amazon solicits Prime subscribers, the Prime Organization focuses 

extensively on how Amazon presents these trials to consumers. 

165. Amazon’s Prime Organization regularly tests new designs for the UPDP, SOSP, 

SPC, TrueSPC, mobile, and other elements of the checkout enrollment flow that prospective 

subscribers see. 

166. 

167. 

168. 

169. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 59 of 92 

170. 

171. 

172. 

173. 

174. In fact, lower-level Amazon designers, marketers, and researchers urged company 

leadership to One 

Amazon employee wrote to Defendant Vice-President Jamil Ghani on July 30, 2020 about 

An unknown $12.99 charge could mean grocery money for a family, gas to fill 

up a car, or just the last bit of money to make rent. . . . Do we think that they 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 60 of 92 

should also [have] to call customer service to ask for a refund, when they 

discover this unknown charge [ for Prime]? 

175. When an Amazon program manager similarly pointed out in an email chain sent 

to a large number of recipients that 

Amazon Vice 

President Cem Sibay scolded him: " [I]t's not appropriate to have this conversation over email, 

and increasingly a mass one at that Gust adding P&C [privileged and confidential] does little)." 

Sibay and Defendants Ghani, Lindsay, and Grandinetti failed to implement any meaningful 

change. 

176. which 

has led to dark patterns and consequently Nonconsensual Emollment. 

Amazon's Knowledge of Nonconsensual Enrollment 

177. Amazon knows that Nonconsensual Emollment is widespread. In fact, Amazon 

periodically smveys consumers who cancel Prime to detennine their reason. For example, from 

November 2018 to Febrnaiy 2019, _ of U.S. consumers Amazon smveyed gave "I did not 

mean to sign up for Amazon Prime" as their " [r]eason for cancellation." 

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178. In September 2020, Amazon also performed an internal study that quantified the 

number of subscribers “unaware” that they had subscribed to Prime based on five considerations: 

 Based on these factors, Amazon estimated that Prime 

subscribers were “unaware” that they had subscribed to Prime. 

179. Nonconsensual Enrollment is both so widespread and well-understood at Amazon 

that the company’s internal documents are littered with references to “accidental” signups. One 

company newsletter circulated among Prime Organization designers and researchers explained: 

The issue of accidental Prime-sign ups is well documented . . . . Customers 

unknowingly become 

because 1) they signed up accidentally and/or didn’t see auto-renewal terms, 2) 

we didn’t send them reminders or charge communications, and 3) they didn’t 

check their card activity. 

180. In fact, as Amazon knows, consumers do not always carefully study their credit 

card activity or notice an Amazon charge for Prime (especially when they are expecting other 

Amazon charges for routine purchases). Consequently, as one internal memorandum explained, 

“[i]f customers unknowingly sign up, or are unaware of auto-renew, they can go through 

multiple billing cycles without using benefits.” 

181. When dissatisfied consumers call Amazon’s customer service to cancel their 

Prime membership, customer service representatives record the reason the consumer gives. 

Amazon studied consumers who asked to cancel their Prime membership and reported to 

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customer service that they had signed up unintentionally to determine the time between when the 

enrollment occurred and the consumer’s call. Amazon then reported the results in a 

memorandum labelled “privileged and confidential”: 

(a)

 meaning Amazon has charged them once without consent. 

(b) 

meaning that Amazon has charged them three times without consent. 

(c) 

meaning that Amazon has charged them six times without consent. 

(d)

 meaning that Amazon has charged them twelve times without consent. 

182. Amazon knows who nearly all Nonconsensual Enrollees are, yet refunds only 

those Nonconsensual Enrollees who eventually notice the charges and complain. 

183. Prime Organization designers and researchers referred to the design changes 

necessary to stop Nonconsensual Enrollment as “clarity” improvements. The problem—as 

Amazon leadership understood—was that clarity improvements reduced subscriptions and, 

therefore, profit. One 2020 internal memorandum concerning “Prime Renewals: Product 

Strategy for 2021” explained the tension this way: projects that improve clarity “‘right size’ the 

member balance to intentional and genuine members, thereby being a bad guy to total Prime 

member balance. This puts these projects at odds with other member balance accretive 

Acquisition and Retention projects: as a result, these projects have inevitably been BTL [below 

the line] in stack ranked prioritizations.” 

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184. Instead of correcting the causes of Nonconsensual Enrollment, Amazon 

leadership focuses energy and investment into iterating 

For example, in part to address Nonconsensual Enrollment after the fact—and without reducing 

subscription balance—Amazon encourages Nonconsensual Enrollees to begin using the benefits 

for which Amazon is already charging them without their consent. In a meeting with Amazon 

designers, Defendant Lindsay was asked about Amazon’s use of dark patterns during the Prime 

enrollment process. Lindsay explained that once consumers become Prime members—even 

unknowingly—they will see what a great program it is and remain members, so Amazon is 

“okay” with the situation. Accordingly, Amazon declined to remove problematic design 

elements from its checkout enrollment flow. 

185. Amazon has known since at least 2016 that its Prime checkout enrollment flow 

contains design elements that trick people into signing up. In particular, designers within the 

Prime Organization and researchers within a separate Shopping Design Organization 

(responsible for studying consumer complaints) knew these design elements caused 

Nonconsensual Enrollment and urged Amazon leadership to change them. For example, in late 

2020, designers and researchers prepared a draft memorandum explaining, in detail, Amazon’s 

use of design techniques “designed to mislead or trick users to make them do something they 

don’t want to do, like signing up for a recurring bill, favoring shareholder value over user value.” 

186. Notably, in a different 2021 draft memorandum entitled “Clarity in Prime 

Subscription Communications” that designers and researchers prepared for Amazon executive 

Dave Clark, the authors recounted how the Shopping Design Organization had studied “mistaken 

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signups since 2016” and identified the problem “to Prime leadership.” Defendant Ghani directed 

subordinates to revise this language because it “reads accusatory.” 

187. Importantly, Prime Organization and Shopping Design Organization researchers, 

designers, and marketers prevailed upon Amazon leadership to experiment with clarity 

improvements four times: in 2018, 2019, 2020, and 2021. Throughout the process, Amazon 

leadership did not object to clarity improvements so long as Prime subscriptions did not fall. 

Each time Amazon clarified the Prime enrollment process, however, subscriptions did fall. And 

each time, Amazon leadership ordered the changes undone. 

Amazon’s 2018 Decision to Defer Enrollment Process Changes 

188. Beginning in 2014, the predecessor to the Shopping Design Organization began 

an effort to identify, study, and resolve “customer frustrations,” or consumer experience issues 

across the entire suite of Amazon subscription services, including Prime, Kindle Unlimited, 

Audible, and others. This effort became known within Amazon as the Customer Frustrations 

Elimination Program (“CFEP”). 

189. As part of the CFEP, researchers compiled a list of user experience issues 

identified by analyzing information consumers provided (including reasons for cancelling 

Prime), individual customer frustration “tickets,” and observational “shop-along” research during 

which researchers would observe customers shopping on Amazon. 

190. CFEP researchers created a database of consumer “frustrations” to which 

participants across Amazon could contribute, and through which participants across Amazon 

could search. Through the database, CFEP researchers centralized Amazon’s consumer research 

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to facilitate collaboration between the CFEP team and the organizations within Amazon (e.g., the 

Prime Organization) responsible for—and able to eliminate—a given “frustration.” 

191. Amazon measures CFEP’s performance based 

In contrast, Amazon measures the Prime Organization’s performance 

based on 

192. In April 2018, at the direction of Amazon’s leadership, including Defendant 

Lindsay, CFEP researchers reviewed the database 

193. CFEP researchers evaluated

 Through this process, CFEP researchers 

194. The Shopping Design Organization’s work overlapped with Project Lucent, a 

Prime Organization initiative aimed at increasing clarity and reducing Nonconsensual 

Enrollment by “simplifying cluttered templates,” phasing out “design paradigms which could be 

confusing to the customer,” and “making the sign-up flow more intuitive,” among other goals. 

In 2018, Defendant Lindsay received an internal memorandum regarding Project Lucent, which 

confirmed “Prime identified the need to increase clarity during the Prime sign-up and onboarding process.” 

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195. Project Lucent researchers found the UPDP contained numerous problematic 

elements. For example, according to the same 2018 document: (1) the button to enroll in Prime 

“does not make it clear that consumers are signing up for Prime”; (2) the option to decline Prime 

enrollment “is not clear/prominent so customers miss it” and click on the enrollment option 

inadvertently; (3) Prime branding is not prominent on the UPDP “so customers did not realize 

this was a Prime upsell”; and (4) the price of Prime and the fact that the subscription service 

would auto-renew “was not prominent so customers did not realize the associated cost.” 

196. To address these problems, the Project Lucent team tested several “clarity” 

improvements intended to clarify the UPDP on a small segment of consumers in the United 

States. 

197. Specifically, Amazon changed the enrollment button from “Get FREE two-day 

shipping” to “Start your 30-day FREE trial.” Amazon also modified the link declining Prime 

from “Continue without fast, free shipping” to “No Thanks.” Additionally, Amazon clarified the 

price of a Prime subscription as well as its auto-renew feature outside of the fine print terms and 

conditions. 

198. Testing revealed, however, that making these clarity improvements would 

In particular, the change to “Start your 30-day FREE 

trial” resulted in the change to “No Thanks” 

and the price and auto-renew clarification 

199. On September 24, 2018, Prime and Shopping Design executives met to discuss 

Project Lucent and the CFEP findings related to Nonconsensual Enrollment. The Shopping 

Design Organization had no authority to implement changes within the Prime Organization’s 

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area of responsibility, which includes the checkout enrollment flow. The primary question at this 

meeting was “how many Prime signups [is] Amazon . . . willing to lose in order to prevent 

unintended Prime Signup[.]” At the meeting, Prime Organization representatives opposed 

changes that would reduce subscription numbers because Amazon evaluates Prime’s 

performance substantially based on subscription numbers. Shopping Design Organization 

researchers and leadership favored changes designed to reduce Nonconsensual Enrollment 

because Amazon evaluates Shopping Design based partly on how many customer “frustrations” 

it eliminates. 

200. Executives acknowledged at the meeting that the enrollment flow lacked 

transparency. 

201. Because the Project Lucent clarity improvements negatively affected subscription 

numbers, the Prime Division pulled the plug on Project Lucent. 

Amazon’s 2019 Decision to Defer Enrollment Process Changes 

202. After the Prime Organization failed to address the problems in the Prime 

enrollment flow that CFEP identified, the Shopping Design Organization escalated the issue to 

Defendant Grandinetti, who had authority over both Organizations. Within Amazon, 

“escalations” occur to “break ties” when two organizations within Amazon disagree. 

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203. Consistent with Amazon’s general practice, the Prime and Shopping Design 

Organizations attempted to jointly prepare a memorandum for Grandinetti describing the testing 

Amazon had conducted as part of Project Lucent, the work CFEP researchers performed, the 

business implications, and the prior decision to halt changes. 

204. On June 17, 2019, high-level representatives of both Organizations met with 

Defendant Grandinetti. Every member in attendance, including Defendants Lindsay and 

Grandinetti, read the memorandum at the beginning of the meeting. 

205. The document identified the issue: “Prime signups are not always transparent” 

and “customers sign up without knowing they did.” The document highlighted specific design 

attributes contributing to Nonconsensual Enrollment. Among other things, the memorandum 

explained that the checkout enrollment flow confused some consumers about whether they were 

enrolling and made it difficult for them to understand Prime’s price and auto-renew feature. 

206. The memorandum further stated these issues were that Amazon 

should address, but also stated that changes to resolve those issues would cause short-term 

enrollment to decrease. 

207. The attendees of the June 17, 2019 meeting discussed their options, including 

 on the option to decline Prime (e.g., “No Thanks, I do not want fast, FREE 

shipping”). Defendant Lindsay even suggested something he called “scary”—that Amazon 

should consider making it as easy to decline Prime as to enroll. The meeting participants also 

discussed specific associated changes, such as changing the decline link to a button to make 

consumers less likely to overlook it. 

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208. Eventually, Defendant Grandinetti vetoed any changes that would reduce 

enrollment. He directed the Prime Organization to improve the checkout enrollment flow as 

much as it could—but only “while not hurting signups.” Consequently, Amazon continued to 

use the designs that caused Nonconsensual Enrollment. 

Amazon’s 2020 Decision to Defer Enrollment Process Changes 

209. In 2020, product marketers and researchers on the Prime Content Experimentation 

and Optimization team (“CE&O”) within the Prime Organization reignited “clarity” efforts to 

improve trust (i.e., to reduce Nonconsensual Enrollment). One marketer gave a presentation on 

clarity to Prime Organization supervisors Nahshon Davidai and Omar Kalim. The presentation 

stated that clarity improvements would “[f]oster customer trust with straightforward messaging” 

because the lack of clarity within the Prime checkout enrollment flow is a “root cause of 

customer friction.” The presentation suggested that the Prime Organization had not implemented 

proposed changes because “business goals” (paid subscriber numbers) and “customer clarity” 

require “a delicate balance.” 

210. After reviewing the presentation, Davidai agreed that Amazon should replace 

their checkout Prime upsells “with something that meets [their] clarity bar.” Accordingly, the 

Prime Division then sought the requisite approval from Defendants Ghani and Lindsay to make 

design changes to the checkout enrollment flow likely to reduce enrollment. 

211. The Prime Organization prepared a document entitled “Prime Framework for 

Clarity” that summarized the problem and options to address it. In particular, the memorandum 

explained that, as a result of manipulative design, Amazon had “accumulated a significant clarity 

debt that [it] need[ed] to start paying down.” Furthermore, its “approach to clarity [had] been 

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short sighted” because “experiments [had] been focused on impact to paid members and 

signups” using the existing problematic checkout enrollment flow as a baseline, which made 

changes difficult because changes that reduced problematic elements lowered enrollment. The 

memorandum proposed “considering the impact on member trust and brand equity” instead. 

212. The document framed the issue this way: “[w]e seek leadership feedback on i) 

are we willing to take an initial membership hit to reset our clarity baseline, and if so, ii) how 

fast we should move to fix these defects.” 

213. After Defendant Ghani approved a draft on June 3, 2020, the Prime Organization 

organized a “Prime Clarity and Member Trust Review” with Defendant Lindsay on July 24, 

2020. At least initially, Lindsay agreed to support the CE&O team’s push for clarity. 

214. Following the meeting, in September 2020, the Prime Organization fixed several 

key problems with the UPDP in the United States including: (a) changing the “decline” option 

from a link to a “No thanks” button; (b) making Prime’s price visible outside the terms and 

conditions; and (c) re-labelling the enrollment button with wording that included “Prime” or 

“Free Trial” (collectively, the “September 2020 Changes”). 

215. As predicted, the September 2020 Changes reduced Prime’s subscription 

numbers. 

216. By November 2020, however, it became clear that the September 2020 Changes 

would cause Prime to miss its financial goals. On December 3, 2020, Defendants Lindsay and 

Ghani met with various Prime Organization leaders and another executive, Doug Herrington, to 

review Prime’s performance. 

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The memorandum further explained that, as a consequence, the Prime Organization would roll 

back the September 2020 Changes and return to the version of the enrollment checkout flow 

217. Defendants Ghani and Lindsay decided to make this rollback permanent. In this 

regard, the Prime Organization continued to implement Defendant Grandinetti’s original 

instruction not to make changes that would reduce subscriptions. 

218. Separately, a Shopping Design senior researcher formed a “Clarity Working 

Group” to improve the enrollment and cancellation process across all of Amazon’s subscription 

programs, including Prime, Audible, Kindle Unlimited, and Amazon Music Unlimited. It 

produced a memorandum and design mockups comparing the then-current versions of 

problematic enrollment and cancellation processes across Amazon with revised versions 

intended to “increase clarity during subscription sign-up, renewal, and cancellation.” For 

instance, with respect to Prime, the Clarity Working Group recommended that the enrollment 

button needs to clearly state that a customer is signing up for a 30-day free trial or a paid 

subscription rather than only stating the customer will receive “FREE” shipping. The Clarity 

Working Group further highlighted the fact that customers had trouble finding the ingress to the 

Iliad Flow and prematurely abandoned the Iliad Flow under the incorrect assumption they had 

completed cancellation of their Prime subscription. The Clarity Working Group also proposed 

metrics to evaluate performance 

The Clarity Working Group presented its memorandum and design mockups to Defendant Ghani 

and a Shopping Design executive, Llew Mason, on December 16, 2020. 

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219. The Clarity Working Group’s December 16, 2020, memorandum urged Amazon 

not to “let financial impact impede efforts to build a trustworthy [customer experience].” It 

further noted the decision to roll back the September 2020 Changes would “improve growth 

metrics” but at the expense of engaging in a The Clarity Working Group 

asked Mason and Defendant Ghani to “urgently revisit this rollback strategy with the right 

decision-makers.” 

Amazon’s 2021 Decision to Make Certain Changes in Response to Regulatory Pressure 

220. On January 6, 2021, Ghani emailed Lindsay. Ghani explained that he had met 

with the Shopping Design Clarity Working Group, which put “forth some standards that Prime 

knows would be significant headwinds to sign ups and are counter to where I think we landed 

with you and Doug [Herrington].” Ghani further acknowledged the “real tension between the 

ongoing push to improve [the customer experience] . . . and the concrete decisions to be made in 

Prime upsells and their headwind to growth,” describing that process as a “balancing act.” Ghani 

also explained to Lindsay “[t]he reality is that the changes we made in September to Prime 

templates where (sic) deemed to be near the ‘minimum bar’ of what we wanted to improve (e.g., 

call out the price outside of the [terms and conditions], make negative [button or link] as 

prominent as positive (sic), remove shadow boxes around buttons). But as you know, the 

changes nevertheless had a significant negative impact.” 

221. Defendant Lindsay elected to prepare yet another memorandum for yet another 

executive, Senior Vice President Dave Clark, to again facilitate a decision among Lindsay, 

Ghani, and others regarding whether to make any changes. 

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222. Specifically, Defendant Lindsay explained to Defendant Ghani: “I may land in 

the same place, but given how hot this topic is in the press lately, and the risk of regulatory 

action in some countries, I [am] [sic] wondering how you might thread the needle . . . between 

making it easy to join, easy not to mistakenly join and not unduly difficult to unsubscribe[.]” 

223. Additionally, Defendant Lindsay asked for “benchmarking,” or analyses of the 

enrollment and cancellation processes Amazon’s competitors use. Defendants Lindsay and 

Ghani sought to determine whether, regardless of Amazon’s own behavior or legal obligations, 

its competitors appeared to use more pernicious enrollment and cancellation design techniques. 

The Prime Organization then compiled the requested “benchmarking” information comparing the 

Prime checkout enrollment flow and the Iliad Flow to competitors’ enrollment and cancellation 

experiences. 

224. The Prime Organization further prepared a draft memorandum that Defendants 

Ghani and Lindsay approved. That memorandum posed several questions, including “[h]ow 

much friction should we add to the signup process knowing that these initiatives come[] at a cost 

in terms of signups and member balance?” The memorandum answered: “Based on results from 

our experiments, we believe tightening clarity at a single transaction at signup is not the right 

approach and that such highly impactful changes to the [customer experience] should not be 

introduced abruptly given the shock to business performance[.]” 

225. The Prime Organization’s memorandum asked: “How easy should we make it to 

cancel Prime?” It also framed the issue as whether Amazon should simplify the Iliad Flow for 

some consumers, “while taking others through a longer path, communicating the benefits of a 

membership and persuading them to stay Prime. . . . If not, should we lean in towards a strategy 

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that simplifies cancelation across the board, including enabling a one click cancellation for all 

customers . . . ?” However, Defendants Lindsay and Ghani made no changes. 

226. In assisting with the memorandum, one Clarity Working Group member noted the 

existence of “consumer watchdogs [who] say the manipulative ‘dark pattern’ design makes it 

hard for people to end membership.” 

227. On March 16, 2021, the FTC issued a CID to Amazon seeking information 

necessary to evaluate whether the Prime enrollment process and the Iliad Flow violated the 

Restore Online Shoppers’ Confidence Act (“ROSCA”), 15 U.S.C. §§ 8401-05. At that point, 

Amazon’s in-house counsel (and, later, its outside counsel) assumed greater control over 

business decisions involving the Prime enrollment process and the Iliad Flow. 

228. Clark met with Defendants Lindsay and Ghani on May 6, 2021, less than two 

months after the CID. Amazon decided to make changes to the enrollment and Iliad flows either 

during or as a result of this meeting. 

229. Amazon made these changes as a result of pressure from both the FTC and 

European Union regulators. 

230. In the second quarter of 2021, Amazon initiated a project to shorten the Iliad Flow 

in the European Union. As discussed above, see Paragraphs 127 and 130, Amazon made 

changes to the Iliad Flow in the United States in or about April 2023. 

Manipulative Designs in the Checkout Enrollment and Iliad Flows 

231. The manipulative designs (sometimes called dark patterns) Amazon uses, or has 

used, in its Prime enrollment flows and the Iliad Flow include the following elements: 

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(a) Forced Action. “Forced Action” is a design element that requires users to 

perform a certain action to complete a process or to access certain functionality. 

(i) Amazon uses Forced Action in the UPDP version of its Prime 

enrollment flow, during which Amazon forces the consumer to choose whether to enroll in Prime 

before allowing the consumer to complete her purchase. In fact, at least as of 2018, Amazon 

knew that some consumers clicked on yellow buttons expecting only to continue the checkout 

process rather than to enroll in Prime. 

(ii) Amazon also uses Forced Action in its Iliad Flow by forcing the 

consumer to proceed through multiple screens to cancel their subscription. The presence of 

Forced Action complicates the Iliad Flow. 

(b) Interface Interference. “Interface Interference” is a design element that 

manipulates the user interface in ways that privilege certain specific information relative to other 

information. 

(i) Amazon uses Interface Interference in its Prime checkout 

enrollment flow, most versions of which reveal the terms and conditions of Prime only once 

during the purchase process, and then only in a small, easy-to-miss font. Amazon also uses 

repetition and color to direct consumers’ attention to the words “free shipping” and away from 

Prime’s price, which leads some consumers to enroll without providing informed consent. 

(ii) Amazon also uses Interface Interference in the Iliad Flow by 

emphasizing options that divert the consumer from the flow without cancelling and by 

employing warning icons near the option to cancel, which evokes anxiety and fear of loss in 

consumers. The presence of Interface Interference complicates the Iliad Flow. 

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(c) Obstruction (“Roach Motel”). “Obstruction,” also known as the “roach 

motel” technique, is a design element that involves intentionally complicating a process through 

unnecessary steps to dissuade consumers from an action. 

(i) Amazon uses Obstruction throughout its Prime checkout 

enrollment flows by making the option to decline enrollment difficult to locate. 

In fact, since at least 2018, Amazon has known that some consumers cannot find the less 

prominent “No Thank You” link to decline enrollment. 

(ii) Amazon also uses Obstruction in its Iliad Flow by: (1) making the 

ingress to the Iliad Flow difficult for consumers to locate; and (2) forcing consumers who have 

already expressed an intent to cancel by locating and entering the Iliad Flow to view marketing 

and reconsider options other than cancellation. The presence of Obstruction complicates the 

Iliad Flow. 

(d) Misdirection. “Misdirection” is a design element that focuses a 

consumer’s attention on one thing to distract from another. 

(i) Amazon uses Misdirection in its Prime checkout enrollment flow 

by presenting asymmetric choices that make it easier to enroll in Prime than not. Additionally, 

certain versions of Amazon’s checkout enrollment flow offer consumers only a less prominent 

blue link to decline Prime. 

(ii) Internal materials from Amazon identify the use of a link rather 

than a button as a type of “misdirection.” In fact, Amazon has known for years that presenting 

consumers with visually unequal options is problematic. As one email from a senior researcher 

recounts, “[d]ating back to 2017, we have made multiple requests (at the Neil [Lindsay] and 

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Jamil [Ghani] level) that the [Prime] team move to a more customer-friendly and accessible CX 

[customer experience], whereby we would use two equally prominent buttons for the Sign Up vs. 

No Thanks.”

 Amazon also uses Misdirection in certain versions of the 

Prime checkout enrollment flow by failing to label the button that enrolls consumers in Prime 

with text indicating what pressing the button will do. For example, Amazon has known for years 

that some consumers do not understand that buttons labelled “Get FREE two-day shipping” 

actually enroll the consumer in the Prime subscription program. 

(iii) Amazon also uses Misdirection in its Iliad Flow by presenting 

consumers with asymmetric choices that make it easier to abandon an attempted Prime 

cancellation than to complete it. In particular, Amazon uses attractors such as animation, a 

contrasting color blue, and text to draw consumers’ attention to “Remind me later” and “Keep 

my benefits” options rather than “Continue to Cancel.” Amazon further misdirects consumers 

who have entered the Iliad Flow by presenting visually appealing options to perform acts other 

than cancel, such as exploring the benefits of the subscription service (thereby exiting the Iliad 

Flow). The presence of Misdirection complicates the Iliad Flow. 

(e) Sneaking. “Sneaking” is a design element that consists of hiding or 

disguising relevant information, or delaying its disclosure. Amazon uses Sneaking by failing to 

clearly and conspicuously disclose Prime’s terms and conditions during its enrollment checkout 

flow, including its price and auto-renew attribute. Amazon also employs Sneaking by failing to 

show Prime’s price or its auto-renewal feature in the consumer’s cart. 

AMENDED COMPLAINT Federal Trade Commission 

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No th-nks, I do no ant fast, free sh· ping Get FREE Two.Day Shi,pp.ing 

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(f) Confirmshaming. “Confirmshaming” is a design element that uses 

emotive wording around the disfavored option to guilt users into selecting the favored option. 

Until at least 2020, the Prime checkout enrollment flow used confirmshaming by requiring 

consumers who sought to decline Prime to click a link stating “No thanks, I do not want fast, free 

delivery”: 

Amazon used such confirmshaming despite internal analyses questioning the propriety of this 

wording. Amazon’s most recent TrueSPC enrollment pathway continues to use a form of 

confirmshaming when it claims: “we’d hate for you to miss out on unlimited fast, FREE 

delivery.” 

Amazon’s Other Subscription Programs Have Similar Features 

232. Amazon operates other subscription services including Audible (audiobooks and 

podcasts), Kindle Unlimited (eBooks and digital media), Amazon Music Unlimited (streaming 

music), and Subscribe & Save (regularly-scheduled delivery of consumer goods). These other 

subscription services also use similar manipulative design elements that trick consumers into 

signing up and thwart their cancellation attempts. 

233. Amazon’s internal usage numbers demonstrate the problem. 

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234. Design concepts that Amazon employs in Prime—its largest subscription 

service—are readily transferrable to Amazon’s other subscription programs. Indeed, the 

Amazon designers and researchers who unsuccessfully urged Amazon to change Prime 

enrollment and cancellation processes also asked Amazon executives to make similar changes to 

Amazon’s other subscription programs. As with Prime, however, Amazon leadership slowed or 

prevented clarity-enhancing and legally-required design changes that would reduce subscription 

numbers. 

Amazon’s Misuse of the “Privileged” Label on Documents 

235. Amazon and its executives, including Defendants Lindsay, Grandinetti, and 

Ghani, misused “privileged” designations on documents addressing issues related to 

Nonconsensual Enrollment and the Iliad Flow: 

(a) Amazon and its executives, including Defendants Lindsay, Grandinetti, 

and Ghani, labelled or forwarded material as “privileged” when the material 

addressed issues related to Nonconsensual Enrollment or the Iliad Flow but did 

not contain or seek legal advice. Amazon and its leadership further directed 

subordinates to follow this improper practice. For example, one employee wrote 

in a January 20, 2021 email that “clarity is a P&C [privileged and confidential] 

topic.” In another, a Prime VP stated, “it’s not appropriate to have this 

conversation [on a lack of clarity in an enrollment upsell] over email, and 

increasingly a mass one at that (just adding P&C does little).” 

(b) Amazon and its executives, including Defendants Lindsay and Ghani, 

included phrases such as “for counsel” or “seeking counsel” or similar at the 

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beginning of email correspondence addressing issues related to Nonconsensual 

Enrollment or the Iliad Flow—typically copied to one lawyer along with many 

businesspeople—when the correspondence did not contain a request for legal 

advice. Amazon and its leadership further directed subordinates to follow this 

improper practice. 

(c) Amazon and its executives, including Defendants Lindsay, Grandinetti, 

and Ghani, included attorneys in certain meetings about Nonconsensual 

Enrollment and the Iliad Flow for the purpose of attempting to render the 

meetings privileged. For instance, Amazon withheld all information regarding the 

May 6, 2021 meeting referenced in Paragraph 228. Amazon and its leadership 

further directed subordinates to follow this improper practice. 

236. Amazon and Defendants Lindsay, Grandinetti, and Ghani performed or directed 

these improper practices because they understood that Nonconsensual Enrollment and the Iliad 

Flow would inevitably result in government investigations. 

237. By identifying (and causing others to identify) communications concerning 

Nonconsensual Enrollment and the Iliad Flow as privileged when they were not, Amazon and 

Defendants Lindsay, Grandinetti, and Ghani obstructed the FTC’s investigation, delaying the 

Commission’s ability to access the falsely-labelled material. 

238. When these acts occurred, Amazon and Defendants Lindsay, Grandinetti, and 

Ghani knew that the Commission’s investigatory proceeding was foreseeable or underway. 

Amazon and Defendants Lindsay, Grandinetti, and Ghani intended to interfere with the 

Commission’s investigatory proceeding and, in fact, did so in the manner alleged herein. 

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Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

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Amazon’s Other Attempts to Delay the Commission’s Investigation 

239. On March 16, 2021, the Commission issued a CID to Amazon seeking 

information regarding the enrollment and cancellation practices associated with Prime. The CID 

directed Amazon to respond by April 15, 2021. Amazon assured the Commission that it would 

cooperate, but did not. 

240. Amazon has over 1.5 million employees—i.e., potential document custodians— 

and its internal communications are replete with acronyms and other jargon—i.e., potential 

search terms—not readily identifiable to outsiders. Accordingly, as with any discovery process, 

the Commission had to, and did, rely on Amazon to participate in good faith in the discovery 

planning process, including by identifying appropriate custodians and search terms. 

241. During at least one phone call shortly following the issuance of the CID, 

Amazon’s counsel assured the FTC’s counsel that, in substance, “I will get you what you need.” 

Amazon’s counsel also told the FTC’s counsel that Amazon would work “to identify the most 

efficient means of providing [the FTC] with the information [it] need[s] to complete [its] 

investigation.” These assurances are consistent with any opposing counsel’s obligation to 

engage in good faith discovery planning. As detailed below, however, Amazon did not follow 

through on these assurances, instead, for example, proposing search terms and custodians that led 

the Commission away from key documents. 

242. In the context of the customary need to rely on opposing counsel to act in good 

faith, Amazon counsel’s significant experience working on FTC investigations, Amazon’s 

promise to “get you what you need,” the massive amount of potential document custodians and 

search terms (many of which were unknowable to the Commission), and other express 

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assurances of cooperation throughout the Subject Period, the Commission agreed to rely on 

Amazon to provide—in the first instance—a sufficient response to the CID, including reasonable 

search terms and custodians, to enable the Commission to fairly evaluate Amazon’s Prime 

enrollment and cancellation practices. However, the Commission always reserved its right to ask 

for additional responsive information and additional search terms and custodians. 

243. Accordingly, during the Subject Period, in response to Amazon’s assurances of 

cooperation and that Amazon would provide the Commission what it needed, the Commission 

temporarily accepted the eight custodians (out of approximately 500 employees with potentiallyresponsive information) and narrow search terms Amazon proposed. The Commission relied on 

Amazon’s assurances that the custodians and search terms selected by Amazon would provide 

the information the FTC needed. 

244. By March 14, 2022, one year later, Amazon had produced only a small amount of 

material—fewer than 9,000 documents—using the custodians and search terms that it had 

proposed. 

245. On March 14, 2022, Business Insider published information leaked from current 

and former Amazon employees regarding the problems with Amazon’s Prime checkout 

enrollment flow and the Iliad Flow. The Commission quickly ascertained that Amazon had 

failed to disclose much of the now-leaked documents and information to the Commission, 

despite the fact that at least some of it was responsive to the outstanding CID. Amazon withheld 

the information by identifying combinations of search terms and custodians it knew would not 

surface the most probative—and inculpatory—material. Among other things, Amazon failed to 

identify as custodians key individuals who communicated extensively about the Prime 

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enrollment and cancellation processes, including the most knowledgeable employees on these 

subjects. Amazon also failed to identify as custodians individuals the Business Insider article 

named as key decision-makers regarding the Nonconsensual Enrollment problem and the Iliad 

Flow. 

246. In contrast, two of the eight custodians identified by Amazon performed little 

work germane to the investigation. But for the Business Insider article, Amazon’s failure to 

identify relevant custodians and search terms may have gone undiscovered. 

247. Pursuant to its reservation of rights, on April 19, 2022, the Commission issued an 

extensive follow-up demand for additional information. Amazon did not comply with this 

demand, instead making the incredible claim that doing so would take 30 months. 

248. On June 30, 2022, the Commission issued an additional CID to Amazon as well 

as CIDs to various current and former employees seeking documents and testimony. Amazon 

also did not comply with the June 30, 2022 CID. 

249. Instead, on August 5, 2022, Amazon and certain individual CID recipients 

(including Defendants Lindsay, Ghani, and Grandinetti) petitioned the Commission to quash the 

June 2022 CIDs. On September 21, 2022, the Commission denied the petition in every material 

respect. Three Commissioners noted with respect to one legal question Amazon raised as a basis 

to delay or avoid providing testimony: “The issue raised by this dispute is just one of many 

challenges facing FTC staff when pursuing complex investigations of targets that may perceive 

benefits to prolonging discovery.” Although the Commission ordered Amazon and the 

individual petitioners to fully comply, they did not. 

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250. Amazon’s effort to delay the Commission’s investigation included its failure to 

identify custodians—including employees who worked the most on clarity issues on enrollment 

and cancellation—and search terms reasonably likely to surface the most probative information. 

In addition to Amazon’s failure to identify custodians and search terms during the Subject Period 

that would have produced the material to which the Business Insider article referred, Amazon did 

not identify any Shopping Design Organization custodians at all. 

251. Amazon largely failed to timely produce the documents the CIDs require. 

Although Prime is the world’s largest subscription program, Amazon produced fewer than 

30,000 documents during the entire two-year investigation. Small businesses routinely produce 

more material to Commission investigators. Moreover, Amazon did not produce most of those 

documents before October 2022—eighteen months after the Commission’s initial CID. 

252. Amazon’s false cooperation assurances described in Paragraphs 239 through 251 

constituted intentional misconduct meant to delay the Commission’s investigation and the 

Complaint. Furthermore, these false cooperation assurances misled the Commission and 

affirmatively concealed the causes of action asserted herein during the Subject Period. 

Amazon’s wrongful conduct foreseeably caused, and did in fact cause, delay of the 

Commission’s investigation of all Defendants, including Lindsay, Grandinetti, and Ghani. 

253. At all times, the Commission acted diligently. Among other things, during the 

Subject Period, the Commission reviewed material Amazon produced and provided feedback to 

Amazon Counsel through correspondence and teleconferences. The Commission also made 

supplemental requests and, to expedite Amazon’s response, demanded that the company accept a 

timeline for its production. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

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254. Amazon’s bad faith response to the Commission’s CID constitutes an 

extraordinary circumstance beyond the Commission’s control. But for Amazon’s effort to 

frustrate the Commission’s investigation, the Commission would have filed this action many 

months earlier. Amazon’s false cooperation assurances described in Paragraphs 239 through 251 

delayed the Commission’s investigation during the period from April 15, 2021 (the initial CID 

return date) and March 14, 2022 (the publication of the Business Insider article). 

255. Amazon’s largely unsuccessful petition to quash delayed the Commission’s 

investigation during the period of its pendency, from August 5, 2022 until September 21, 2022. 

256. Based on the facts and violations of law alleged in this Amended Complaint, the 

FTC has reason to believe that Defendants are violating, and are about to violate, laws enforced 

by the Commission because Defendants have engaged in ROSCA violations repeatedly and 

knowingly for years. Those violations are ongoing. Even if Amazon halts or has halted some 

problematic conduct, Amazon has consistently pressured its employees to maintain Prime 

subscription numbers, meaning the incentive for enrollment and cancellation process violations 

remains. 

257. Additionally, until shortly before the Commission filed the Complaint, Amazon 

used the Iliad Flow to persuade consumers to keep their Prime subscriptions. Amazon only 

revamped Iliad in response to pressure from the Commission, and without such pressure— 

including this lawsuit—Amazon would likely restore Iliad. Furthermore, the revamped 

cancellation process still contains problematic elements because the cancellation process remains 

difficult to locate on both desktop and mobile. Amazon still requires five clicks on desktop and 

six on mobile for consumers to cancel from Amazon.com. And both flows still require 

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consumers to proceed through extraneous information unnecessary to the cancellation process 

and presented solely to discourage cancellation. The continued presence of these problematic 

elements illustrates that, although the form of the cancellation flow recently changed, Amazon’s 

mindset has not. 

258. Indeed, Amazon considers changes to Prime enrollment and cancellation 

mechanisms as “two-way door” decisions, meaning that those changes can be undone at any 

time. 

259. Amazon is one of the world’s largest and most well-resourced companies. It has 

extensive legal resources including in-house and outside counsel with expertise in the FTC Act, 

ROSCA, and the company’s other consumer protection obligations. Amazon embedded inhouse counsel within the Prime Organization, and key decisionmakers Defendants Lindsay, 

Ghani, and Grandinetti routinely conferred with such in-house counsel, including in-house 

attorney Praju Tuladhar, regarding obligations under the FTC Act, ROSCA, and other consumer 

protection laws and regulations. 

260. Accordingly, Amazon and Defendants Lindsay, Ghani, and Grandinetti, have 

actual knowledge or knowledge fairly implied on the basis of objective circumstances that their 

actions are unfair or deceptive and are prohibited by ROSCA. 

VIOLATIONS OF THE FTC ACT 

261. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts 

or practices in or affecting commerce.” 

262. Acts or practices are unfair under Section 5 of the FTC Act if they cause or are 

likely to cause substantial injury to consumers that consumers cannot reasonably avoid 

AMENDED COMPLAINT Federal Trade Commission 

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themselves and that is not outweighed by countervailing benefits to consumers or competition. 

15 U.S.C. § 45(n). 

COUNT I 

Unfairly Charging Consumers Without Consent 

(All Defendants) 

263. In numerous instances, as described in Paragraphs 2 through 238 above, 

Defendants have charged consumers without their express informed consent. 

264. Defendants’ actions cause or are likely to cause substantial injury to consumers 

that consumers cannot reasonably avoid themselves and that is not outweighed by countervailing 

benefits to consumers or competition. 

265. Therefore, Defendants’ acts or practices as set forth in Paragraph 263 constitute 

unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45(a), (n). 

VIOLATIONS OF THE RESTORE ONLINE SHOPPERS CONFIDENCE ACT 

266. In 2010, Congress passed the Restore Online Shoppers’ Confidence Act, 15 

U.S.C. §§ 8401-05, which became effective on December 29, 2010. Congress passed ROSCA 

because “[c]onsumer confidence is essential to the growth of online commerce. To continue its 

development as a marketplace, the Internet must provide consumers with clear, accurate 

information and give sellers an opportunity to fairly compete with one another for consumers’ 

business.” Section 2 of ROSCA, 15 U.S.C. § 8401. 

267. Section 4 of ROSCA, 15 U.S.C. § 8403, generally prohibits charging consumers 

for goods or services sold in transactions effected on the Internet through a negative option 

feature, as that term is defined in the FTC’s Telemarketing Sales Rule (“TSR”), 16 C.F.R. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

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§ 310(w), unless the seller: (a) clearly and conspicuously discloses all material terms of the 

transaction before obtaining the consumer’s billing information; (b) obtains the consumer’s 

express informed consent before making the charge; and (c) provides simple mechanisms to stop 

recurring charges. See 15 U.S.C. § 8403. 

268. The TSR defines a negative option feature as: “in an offer or agreement to sell or 

provide any goods or services, a provision under which the consumer’s silence or failure to take 

an affirmative action to reject goods or services or to cancel the agreement is interpreted by the 

seller as acceptance of the offer.” 16 C.F.R. § 310.2(w). 

269. As described in Paragraphs 2 through 238, Defendants have created and manage 

several negative option features as defined by the TSR, 16 C.F.R. § 310.2(w), including Prime. 

270. Pursuant to Section 5 of ROSCA, 15 U.S.C. § 8404(a), and Section 18(d)(3) of 

the FTC Act, 15 U.S.C. § 57a(d)(3), a violation of ROSCA constitutes a violation of a rule under 

section 18 of the FTC Act, 15 U.S.C. § 57a, and constitutes an unfair or deceptive act or practice 

in or affecting commerce, in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

271. Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A), as modified by 

Section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. § 2461, as 

amended, and as implemented by 16 C.F.R. § 1.98(d), authorizes this Court to award monetary 

civil penalties of up to $50,120 for each violation of ROSCA, 16 C.F.R. § 1.98(d). 

AMENDED COMPLAINT Federal Trade Commission 

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COUNT II 

Violation of ROSCA—Inadequate Disclosures 

(All Defendants) 

272. In numerous instances, in connection with charging consumers for goods or 

services sold in transactions effected on the Internet through a negative option feature, as 

described in Paragraphs 2 through 238 above, Defendants failed to clearly and conspicuously 

disclose all material terms of the transaction, including the price of Prime, its auto-renewal 

provision, and cancellation requirements, before obtaining the consumer’s billing information. 

273. Defendants’ practices as set forth in Paragraph 272 are violations of Section 4 of 

ROSCA, 15 U.S.C. § 8403(1), and are therefore violations of a rule promulgated under Section 

18 of the FTC Act, 15 U.S.C. § 57a, 15 U.S.C. § 8404(a), and therefore constitute an unfair or 

deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

274. Defendants committed the violations set forth in Paragraph 272 with the 

knowledge required by Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

COUNT III 

Violation of ROSCA—Nonconsensual Enrollment 

(All Defendants) 

275. In numerous instances, in connection with charging consumers for goods or 

services sold in transactions effected on the Internet through a negative option feature, as 

described in Paragraphs 2 through 238 above, Defendants failed to obtain the consumer’s express 

informed consent before charging the consumer’s credit card, debit card, bank account, or other 

financial account for the transaction. 

AMENDED COMPLAINT Federal Trade Commission 

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276. Defendants’ practices as set forth in Paragraph 275 are violations of Section 4 of 

ROSCA, 15 U.S.C. § 8403(2), and are therefore violations of a rule promulgated under Section 

18 of the FTC Act, 15 U.S.C. § 57a, 15 U.S.C. § 8404(a), and therefore constitute an unfair or 

deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

277. Defendants committed the violations set forth in Paragraph 275 with the 

knowledge required by Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

COUNT IV 

Violation of ROSCA—Failure To Provide Simple Cancellation Mechanism 

(All Defendants) 

278. In numerous instances, in connection with charging consumers for goods or 

services sold in transactions effected on the Internet through a negative option feature, as 

described in Paragraphs 2 through 238 above, Defendants fail to provide simple mechanisms for 

a consumer to stop recurring charges for the good or service to the consumer’s credit card, debit 

card, bank account, or other financial account. 

279. Defendants’ practices as set forth in Paragraph 278 are violations of Section 4 of 

ROSCA, 15 U.S.C. § 8403(3), and are therefore violations of a rule promulgated under Section 

18 of the FTC Act, 15 U.S.C. § 57a, 15 U.S.C. § 8404(a), and therefore constitute an unfair or 

deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

280. Defendants committed the violations set forth in Paragraph 278 with the 

knowledge required by Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

90 
 

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Case 2:23-cv-00932-JHC Document 67 Filed 09/20/23 Page 91 of 92 

CONSUMER INJURY 

Consumers are suffering, have suffered, and will continue to suffer substantial injury as a 

result of Defendants’ violations of the FTC Act and ROSCA. Absent injunctive relief by this 

Court, Defendants are likely to continue to injure consumers and harm the public interest. 

PRAYER FOR RELIEF 

Wherefore, Plaintiff requests that the Court: 

A. Enter a permanent injunction to prevent future violations of the FTC Act and 

ROSCA by Defendants; 

B. Award Plaintiff monetary civil penalties from Defendants for every violation of 

ROSCA; 

C. Award monetary and other relief within the Court’s power to grant; and 

D. Award any additional relief as the Court determines to be just and proper. 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

91 
 

 

 

 

 

 

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Respectfully submitted, 

Dated: September 20, 2023 /s/ Evan Mendelson 

EVAN MENDELSON (DC Bar #996765) 

OLIVIA JERJIAN (DC Bar #1034299) 

THOMAS MAXWELL NARDINI 

(IL Bar #6330190) 

Federal Trade Commission 

600 Pennsylvania Avenue NW 

Washington, DC 20580 

(202) 326-3320; emendelson@ftc.gov (Mendelson) 

(202) 326-2749; ojerjian@ftc.gov (Jerjian) 

(202) 326-2812; tnardini@ftc.gov (Nardini) 

COLIN D. A. MACDONALD (WSBA # 55243) 

Federal Trade Commission 

915 Second Ave., Suite 2896 

Seattle, WA 98174 

(206) 220-4474; cmacdonald@ftc.gov (MacDonald) 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

AMENDED COMPLAINT Federal Trade Commission 

Case No. 2:23-cv-0932-JHC 600 Pennsylvania Ave., NW 

Washington, DC 20580 

(202) 326-3320 

92