Amazon Prime on Trial
Trial Begins
Amazon and the Federal Trade Commission (FTC) began a jury trial over whether the company deceived customers into signing up for Prime memberships.
Context
Amazon launched Prime in 2005 as a subscription service offering fast shipping and other benefits for $139 per year or $14.99 per month. The service has grown to include more than 200M members globally and generated over $44B in subscription revenue last year. Prime members typically spend twice as much on Amazon as non-Prime customers, making the service crucial to Amazon’s business model.
FTC’s Case
A jury trial began this week between Amazon and the FTC over whether Amazon tricked customers into signing up for its Amazon Prime memberships.
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