# Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 1 of 87

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Af123b32e3a0d2440

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 1 of 87

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON

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COMPLAINT FOR PERMANENT
INJUNCTION, CIVIL
PENALTIES, MONETARY
RELIEF, AND OTHER
EQUITABLE RELIEF

Plaintiff,

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Civil Action No. ____________
2:23-cv-0932

FEDERAL TRADE COMMISSION,

v.
AMAZON.COM, INC., a corporation,

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Defendant.

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

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

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

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

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

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

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

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 2 of 87

SUMMARY OF CASE

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For years, Defendant Amazon.com, Inc. (“Amazon”) has knowingly duped

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millions of consumers into unknowingly enrolling in its Amazon Prime service (“Nonconsensual

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

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or deceptive user-interface designs known as “dark patterns” to trick consumers into enrolling in

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automatically-renewing Prime subscriptions.

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The Nonconsensual Enrollment problem was well known within Amazon.
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In a draft memorandum

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Some Amazon employees pushed the company executives responsible for

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

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

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would not be tricking its customers.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 3 of 87

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

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

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

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For years, Amazon also knowingly complicated the cancellation process for

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

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

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

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this Complaint. However, prior to that time, the primary purpose of the Prime cancellation

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

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

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

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

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

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adversely affected Amazon’s bottom line.

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

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

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decisions they would not otherwise have made.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 4 of 87

JURISDICTION AND VENUE

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and 1345.

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

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

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

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

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

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

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

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

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

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

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

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Defendant Amazon transacts and has transacted business in this District and

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

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

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North, Seattle, Washington 98109.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 5 of 87

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At all times relevant to this Complaint, acting alone or in concert with others,

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

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subscribers throughout the United States access to additional services otherwise unavailable or

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available only at an additional charge to other consumers. Among other things, these premium

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

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marketplace, streaming content, and grocery delivery.
COMMERCE

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At all times relevant to this Complaint, Amazon has maintained a substantial

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course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act,

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15 U.S.C. § 44.
DEFENDANT’S BUSINESS ACTIVITIES

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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.

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

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

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subscribers spend more than

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Prime shoppers.

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as much shopping on Amazon as compared to non-

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

business goal of Prime—is increasing subscriber numbers.
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Within Amazon’s corporate structure, the Prime organization or department

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

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performance based on the

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.

COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 6 of 87

Typical Prime Enrollment Experiences

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Consumers can subscribe to Prime through multiple pathways including through

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

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

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the Amazon shopping checkout process.

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subscriptions occur through

The basic consumer checkout enrollment experience proceeds as follows on both

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

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

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

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

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

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items in their cart or abandon their cart.

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

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

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

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

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

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

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

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 7 of 87

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called the

On desktop devices, Amazon has several Prime upsells: an interstitial upsell
an d three non-interstitial upsells called the

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On mobile devices, Prime upsells miITor those on desktop, an d include

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the
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on Desktop . Amazon calls the Prime interstitial upsell th e . Although th e -

has changed over time, it generally inte1n 1pts

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

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Prime and a comparatively inconspicuous link to decline. Consumers cannot avoid th e -

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The upsell forces consumers to select either the button or the link to proceed to checkout. See
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Attachments A- D.

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The -

orange button, which enrolls a consumer in Prime if clicked, is

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

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shipping" or a "free trial."

See Attachment A

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See
Attachments C and D.

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 8 of 87

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see Attachment A and B,

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see Attachments C and D,

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free trial,

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

The

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Attachment C.

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see Attachment A,
see Attachment B.
See
See Attachment D.

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See Attachments A–D.

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The

does not adequately disclose the price of the monthly auto-renewal

feature of Prime.

. See Attachments A–D.

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includes language that the consumer will not receive

“free shipping.”

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’s blue link, which declines the Prime membership if clicked,

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 9 of 87

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See Attachment E .

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(c)

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 10 of 87

See Attachment E.

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(d)

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See Attachment E.

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(e)

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See Attachment E.
(f)

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See
Attachment E.
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(a)

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 11 of 87

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See Attachment F.

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(b)

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See Attachment F.

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(c)

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See Attachment F.

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(d)

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. See Attachment F.

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Separate from the

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, various Prime upsells appear as elements within the

online checkout flow, which itself appears in various versions to consumers depending on factors
COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 12 of 87

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(i.e., whether a consumer has previously declined a Prime upsell).

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on Desktop.

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. See Attachment G, at 3–4.

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. See Attachment G, at 4.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 13 of 87

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See Attachment G, at 5.
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See Attachment G, at 6.

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COMPLAINT
Case No. _:__-cv-_____

13

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 14 of 87

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See Attachment G, at 7 .

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 15 of 87

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See Attachment H, at 3–4.

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See Attachment H, at 5.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 16 of 87

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See Attachment H,

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at 5.
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See Attachment H, at 5.

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 17 of 87

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47.

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See Attachment H, at 6.

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on Desktop.
See Attachments I–K.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 18 of 87

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Attachment I with Attachments J and K.

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See Attachment

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I, at 3.

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 19 of 87

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See Attachment K, at 4.

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See Attachment I, at 4.

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See Attachment I, at 4.

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COMPLAINT
Case No. _:__-cv-_____

19

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 20 of 87

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See Attachment I, at 4.
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See Attachment I, at 4.

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COMPLAINT
Case No. _:__-cv-_____

20

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 21 of 87

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See Attachment I, at 4.

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COMPLAINT
Case No. - :- -cv-- -

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

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Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 22 of 87

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See Attachment J, at 7.

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See

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Attachment J, at 7.

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COMPLAINT
Case No. _:__-cv-_____

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Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 23 of 87

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See Attachment K, at 5.
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See Attachment J, at 8.

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COMPLAINT
Case No. _:__-cv-_____

23

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 24 of 87

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See Attachment J, at 8.

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63.

, Prime upsells on the mobile checkout flow have mirrored

those on desktop checkout, and have included the
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Navigating Prime upsells on mobile devices is more difficult than on a desktop.

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

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

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

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

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COMPLAINT
Case No. _:__-cv-_____

24

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 25 of 87

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Mobile (Past).

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See Attachment L, at 4.

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See Attachment L, at 5-6.

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COMPLAINT
Case No. _:__-cv-_____

25

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 26 of 87

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68.
See

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Attachment L, at 7.

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See Attachment L, at 7.

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COMPLAINT
Case No. _:__-cv-_____

26

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 27 of 87

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70.

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See Attachment L, at 8.

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71.

The

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problematic elements as the
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The

on mobile devices contained similar
on desktop.

on mobile

required consumers to either

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

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Attachment M.

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COMPLAINT
Case No. _:__-cv-_____

27

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 28 of 87

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as

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The

on mobile also contained similar problematic elements

on desktop.
74.

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See Attachment N, at 3-4.
See Attachment N, at 5-6.
75.

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See Attachment N, at 7.

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COMPLAINT
Case No. _:__-cv-_____

28

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 29 of 87

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See Attachment N, at 8.

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Mobile (Current). In 2022, Amazon

78.

The current mobile upsells contain many of the same problematic elements as the
—including misleading language and manipulative designs—which lead

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consumers to enroll in Prime without their consent.
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Consumers using mobile devices to navigate to Amazon.com can select a product

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

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

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

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

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

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COMPLAINT
Case No. _:__-cv-_____

29

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 30 of 87

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

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large yellow “Continue” button to proceed to a mobile

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signed in proceed directly to the mobile
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. Consumers who have already

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Consumers without an account must create one before reaching the mobile

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

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

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takes the consumer to the mobile
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When a consumer reaches the mobile

, Amazon divides the page, with a

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

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

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COMPLAINT
Case No. _:__-cv-_____

30

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 31 of 87

1

83.

At the top of the mobile

-

, Amazon informs the consumer that “we’re giving

2

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

3

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

4

feature. Consumers can view this section without scrolling.

5

.

re I v111lil
ri11itie for

6
7
8
9

84.

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

10

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

11

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

12

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

13

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

14
15

et F

16

5

el'

ry

me

17
18
19
20
21
22
23

COMPLAINT
Case No. _:__-cv-_____

31

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 32 of 87

1

85.

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

2

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

3

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

4

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

5

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

6

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

-

7
8
9

30

10
11
12
13
14
15
16
17
18
19
20
21
22
23

COMPLAINT
Case No. _:__-cv-_____

32

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 33 of 87

1

86.

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

2

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

3

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

4

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

5

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

6

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

7

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

8

Account and adjusting your membership settings.”

9

Fast, FREE delivery on

Minimum order
requ irements

Prime eligible items

10

All the music + top podcasts
Music listening with ads

ad-free on Amazon Music

Not included

Prime Video - Enjoy awardwinning Amazon Originals,

11

fi

12

movies and TV shows

13
Use my gift card balance, when ava ilable,
to pay fo r Prime.

14

Get FREE Two-Day Delivery with Prime

15

Save $5.99 inst antly on t his order

16

No thanks

17

By signin g up, you acknowledge th at you have read
and agree t o t he Amazon Prime Terms and
Conditions and aut horize us to charge your defa ult
payment method (Visa '"'- 3947) or another
availab le payment m ethod on file after your 30-day
free trial. Your Amazon Prime membership

18

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.

19
20

For customers in Hawaii, Puerto Rico, and Alaska
please vi sit the Amazon Prime Shippinq Benefits
i ama zon .com

21
22
23

COMPLAINT
Case No. _:__-cv-_____

33

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 34 of 87

1

87.

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

2

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

3

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

4

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

5

Amazon enrolls the consumer in Prime.

6
7
8
9
10
11

88.

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

12

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

13

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

14

See Attachment O, at 5.

15
16
17

89.

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

or the blue “No thanks” link. See Attachment O, at 5.
90.

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

18

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

19

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

20

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

21

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

22

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

23

COMPLAINT
Case No. _:__-cv-_____

34

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 35 of 87

1

91.

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

2

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

3

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

4

shipping method.

5

92.

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

6

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

7

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

8

thanks” to Prime on the prior page.

9

93.

In each pathway (

, and mobile), Amazon fails to

10

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

11

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

12

cancels. Furthermore, in each pathway

13

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

14

consumers.

15

94.

, and mobile), Amazon

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

16

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

17

Prime Video alone, it is difficult to do so.

18
19
20

95.

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

Video, which would be a lower-cost option.
96.

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

21

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

22

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

23

COMPLAINT
Case No. _:__-cv-_____

35

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 36 of 87

1
2
3
4
5
6
7
8
9
10
97.

11

Capitalizing on some consumers’ inability to appreciate the difference between

12

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

13

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

14

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

15

unknowingly.
98.

16
17

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.
99.

18

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

19

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

20

V.

21
22
23

COMPLAINT
Case No. _:__-cv-_____

36

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 37 of 87

1

100.

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

2

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

3

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

4

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

5

V, at 2-5.

6
7

101.

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

regarding Prime, as opposed to Prime Video.

8

102.

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

9

from top to bottom:

10

(a)

11

trial”;

12

(b)

the email associated with the account;

13

(c)

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

14

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

15

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

16

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

17

“change” box to the right);

18

(d)

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

19

(e)

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

20

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

21

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

22

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

23

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

COMPLAINT
Case No. _:__-cv-_____

37

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 38 of 87

1

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

2

Your Account and adjusting your membership settings;” and

3

(f)

4

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

5

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

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

6
7
8
9
10
11
12
13
14
15
16
17

103.

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

18

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

19

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

20

P, at 2 and Attachment V, at 6.

21

104.

22
23

COMPLAINT
Case No. _:__-cv-_____

38

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 39 of 87

1
See Attachment P, at 3.

2
3
4
5
6
7
8
9
10

105.

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

11

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

12

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

13

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

14

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

15

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

16

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

17
18
19
20
21
22
23

106.

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

Video on a mobile device.
107.

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.
108.

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
COMPLAINT
Case No. _:__-cv-_____

39

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 40 of 87

1

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

2

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

3
4
5
6
7
8
9
10
11
12
13
14

109.

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

15

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

16

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

17

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

18

110.

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

19

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

20

bottom:

21

(a)

22

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

23

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

COMPLAINT
Case No. _:__-cv-_____

40

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 41 of 87

1

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

2

sign (“>”).

3

(b)

4

information.

5

(c)

6

Prime’s price and auto-renewal feature.

7

(d)

8

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

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

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

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

-~

9

prime

10

Confirm your details
Plan

11

Prime

Enjoy ul'im- t~ streamng of
tha.isands of IT10\0eS aDd TV
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By sigriing LIP. )'OU ack:nm-.1ed9e tra:t you have read
Jnd.o,gtt'C to (h~ 11.!l'J](M'I, Pn.me T('1ffl', ,1nrl ((}(l('.:l flon.-;
MOouthO Amazon Prime

12

Yo u can end your Prime members h ip by selecting the End Membership b utton on
this page.

13

Paid mem bers who haven't used t heir benefits are eligible for a fuU
refund of the current m e mbers hip period_ We'll process. t he re fu nd in
th ree t o five business days,

14

End 'Vour Prirne Membe,ship

15

• Additional subscript ions t ied to yo ur membe r.ihip wo n't renew once you r Prime
me m bership e nd s.
• If your Prime me m be rsh ip 1s ass:ocia ed wit h a service yo u recerve t hrough an ot her
company (such as Sp rint), cont act that company to m a nage you r Prime me m bership .
• Customers who sig n u p fo r Amazo n Pri me using the Android mobile shopping app m ust
mana ge the ir subsc riptio n t hrough Go ogle Subscript ion services.

16
17

To end yo ur Amazon Prime membership:
1. Go t o your Prime membe rship.
2 . Select Up da t e, C.i:ncel, ;rnd m o re, and fo ll ow the on-s.c reen instructions.

18
19

>

End Your Amazon Prime Membership

123.

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

20

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

21

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

22

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

23

COMPLAINT
Case No. _:__-cv-_____

45

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 46 of 87

1

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

2

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

3

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

4

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

5
6
7
8

124.

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

consumer to the Iliad Flow through similar steps. See Attachment S.
125.

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

■

; 2) navigate from Amazon.com to

9
10

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

11

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

12

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

13

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

14

pressing a button reading “End Your Prime Membership.”

15

126.

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

16

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

17

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

18

127.

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

19

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

20

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

21

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

22

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

23

COMPLAINT
Case No. _:__-cv-_____

46

Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
(202) 326-3320

Case 2:23-cv-00932 Document 1 Filed 06/21/23 Page 47 of 87

1

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

2

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

3
You still have 7 days left to enjoy your Prime benefits until the next billing cycle

4

Your benefit usage

PRIM[BENEmsusrn:

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Pac ges st,1pped for free
with Prim~ Dielivery. Strice: $'29:-99- 0

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shipp!i!d by Am-az,on ove r $25. Ord!i!r w ithin 8 hrs 28
mi ns
Arrives bcf-ore Chrlstmia

m

|2

Case 2:23-cv-00932 Document 1-15 Filed 06/21/23 Page 4 of 8

amazon
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Add a new address
Use current location
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Conditions of Use

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>

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Interest-Based Ads

© 1996-2022, Amazon.com, Inc. or its aﬃliates

|3

Case 2:23-cv-00932 Document 1-15 Filed 06/21/23 Page 5 of 8

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Case 2:23-cv-00932 Document 1-17 Filed 06/21/23 Page 3 of 6

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|2

Case 2:23-cv-00932 Document 1-17 Filed 06/21/23 Page 4 of 6

• =======~ .=======~ J

-

thank you for being a member with us. Take a look back at
your journey with Prime.

You still have 7 days left to enjoy your Prime benefits until t he next b illing cycle

Your benefit usage

PR1ME BENEFITS usEo:

Packages shipped for free

JIOI\

PAST 12 MONTHS

Movies and TV shows
watched with Prime
Video. You can .tart
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Prime Video and mar,y other benefits.

|3

Case 2:23-cv-00932 Document 1-17 Filed 06/21/23 Page 5 of 6

•

•
-

save $40.88 over 12 months by switching to annual payments
Items tied to your Prime membership will be affected if you cancel your membership.
1. By cancelling, you will no longer be eligible for your unclaimed Prime exclusive offers.

Get all the benefit s of Prime for less
We'd like t o offer you the chance to enjoy all the benefits of Pr ime for only
$139/year.

ArQ you ;i rtudelnt7

Have an EBT card/receive government assistance?
By dicking •switch tc, aMu:il payments•, yc,ur default P3Ymen1 method c,1 another available payment method on file w,U be charged S139/year plus any
appl1ca01e taxes. Yo111 Pr1me membership w,u conunue until cancelled. You will Ile retunCICCI 514.!:l!:I for your '1' mmbershlp rm,w,.
Keep M )' M c m bc.-,hlp

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January 24, 2023

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l!-rship, USmind Me tilter
Remind me three days before my membership

renews.

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Items tied to yoor Prim,; rnemb.!nhip wlll bl!c
aff«wd if you ,;,nc4'1 yow mcmb•rsltlp.
1 . By cancelling, you will no longer be ebg[ble

for your unclaimed Prime exclusive offers.

End on January 24, 2023

Your benefits will continue until Jam1ary 24,
2023, after which your card will not be
charged.
OR

£11dNow

•

Your benefits will end itnmedjately and you
will~ refunded $16.32 fw the remmn1n9
pcrtod of yoor memb~shlp.

18

Case 2:23-cv-00932 Document 1-18 Filed 06/21/23 Page 10 of 11

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Case 2:23-cv-00932 Document 1-19 Filed 06/21/23 Page 1 of 7

ATTACHMENT S

Case 2:23-cv-00932 Document 1-19 Filed 06/21/23 Page 2 of 7

how to cancel membership
how do i cancel my prime membership
how to cancel prime membership immediat ...
how to cancel audible membership
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0 ALEXA'S ANSWER
How to cancel member5hip?

To canc el your Prime membership, visit End Your
Amazon Prime MembershiR, then select End
Member5hip. Paid members who haven't used their

benefits are eligible for a full ref und of the current
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Bee People and the Bugs They
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Case 2:23-cv-00932 Document 1-19 Filed 06/21/23 Page 4 of 7

I Q. Search Help
Manage Your Prime Membership > Ed,t Membership

•
- • thank you for being a member with us. Take a look back at
your journey with Prime.

You still have 18 days left to enjoy your Prime benefits until the next billing cycle

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PRIME BENEFITS usm:

PAST 12 MONTHS

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wrth Prime Delivery. Start
shopping today's deals!

tQl\ Q watched with Prime
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watching videos by
dicking her~

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Songs listened to wit h
Amazon Music Prime.
Start listening nowt

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|4

Case 2:23-cv-00932 Document 1-20 Filed 06/21/23 Page 6 of 9

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Your Account> Manage Your Prime Membership > Edit Mem bersh ip

•

•

save $40.88 over 12 months by switching to annual
payments
Get all the benefits of Prime for less
We'd like to offer you the cha nce to enjoy all the benefits of Prime for only
$139/year.
S1N1tch to annu.al paymem:s s
Are you a student?

Have an EBT card/receive government assistance?

By clK.kmg "Swrtch to annu.:il p.ryments", ycur dcf.lult payment method o r anot her av.11labte payment method on file ~II be ch.:irgcd $139/ yciK plus a ny
applk .ible taxes. Your Prime m embership will contin ue until canceUed You will be rt>fu nded $ 16.31 for your curre nt plan.

Remmd Me Latet

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|5

Case 2:23-cv-00932 Document 1-20 Filed 06/21/23 Page 7 of 9
i

amazon.com/mc/p1peline5/canc.ella11on?ref_ =pcen_co,_of_con_cn_btn&p1d=cancelt.i11on&ep=altemawe_offer%2Ca11emawe_marketll'l9%2Ccancellat10n&lp::.a11erna1tve_market1ng&cp=altemat,ve_offer&ms3_c=dS4a8cfcc 11023d2080690b89d3dac.ab

You,. Account > Manage Your Prime Membersh,p > Edit Membefship

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we're sorry to see you go. Please confirm the cancellation of your
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You could also consider the following:
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You will continue enjoying all the benefits of Prime
V,ew eYeryt hing induded ln Prime

Pause your Prime membership:

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l.

By pausing, you will no longer be eligible fOf your unclaimed Prime exclusive offers. Cilek here to see your offers.

Pause on March 02, 2023
Your benefits access will continue until March 02. 2023. After tl\at date, your billrng and
benefits will be pau~. and you will no longer be charged for your Pnme membership.
Use the qud:;~resume function anytime to regain access to your Pnme benefits. learn
Mo~

Pai.r..eonM,mh0l,2023

Cancel you r Prime membership:

Items tied to your Prime membership will be affected if you cancel your membership.
l.

By cancelling, you will no longer be eligible for your unclaimed Prime exclusive offers.

Pause on March 02, 2023
Your benefits ;acces5 will continue until M;arch 02. 2023. After tl\at date, your b1lltn9 and
benefits. will be pau~. and you will no longer be charged fOf your Prime membership.

Pau!>l!onMarch0l,2023

u~ the quick-resume function anytime to regain access to your Prime benefits. l earn
Mo~

Cancel your Prime membership:

Items tied to your Prime membership will be affected if you cancel your membership.
l.

By cancelling, you will no longer be eligible for your unclaimed Prime exclusive offers.

End on March 02, 2023
Your benefits will contlflue until March 02, 2023, alter wh,ch your card will not be
charged

End on Marc:h 02. 2023

OR

End Now
Your benefiuwm l!lld lmmediatety and you will be refunded $16.31 for the remaining
period of your membefship

Amazon Prime Terms and Conditions

|6

Case 2:23-cv-00932 Document 1-20 Filed 06/21/23 Page 8 of 9

C

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amazon.com/mc/home?act1onSuccess.=true&act:ionTalcen=CancelJat10n

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Case 2:23-cv-00932 Document 1-20 Filed 06/21/23 Page 9 of 9

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|5

Case 2:23-cv-00932 Document 1-21 Filed 06/21/23 Page 7 of 7

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|6

Case 2:23-cv-00932 Document 1-22 Filed 06/21/23 Page 1 of 9

ATTACHMENT V

Case 2:23-cv-00932 Document 1-22 Filed 06/21/23 Page 2 of 9

|1

Case 2:23-cv-00932 Document 1-22 Filed 06/21/23 Page 3 of 9

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oo,r t wa11t to COf1ti,.-J e fOI 'i 1.a..H/m on rn pk.IS a ,lf appi cal)le ta.-.es,. you may ca,xet .:t1)yti.-.e l)yviSiti119 vo-.i, Accou,n ar.o .iqusttlllf you,
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Case 2:23-cv-00932 Document 1-22 Filed 06/21/23 Page 8 of 9

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Case 2:23-cv-00932 Document 1-22 Filed 06/21/23 Page 9 of 9

|8

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Af123b32e3a0d2440. Public record. Not legal advice.
