FTC Sues Amazon, Ticketmaster for Deceptive Subscriptions and Price Gouging

The FTC is suing Amazon for using deceptive "dark patterns" to enroll users in Prime subscriptions without consent and complicating cancellations, and Ticketmaster for colluding with scalpers to inflate ticket prices. These cases could reshape subscription and ticketing practices, prioritizing consumer protection in tech and entertainment.
FTC Sues Amazon, Ticketmaster for Deceptive Subscriptions and Price Gouging
Written by John Marshall

The FTC’s Crackdown on Tech Giants

In a bold move underscoring the Federal Trade Commission’s aggressive stance against consumer deception in the digital age, the agency has launched significant legal actions against two industry behemoths: Amazon.com Inc. and Live Nation Entertainment Inc.’s Ticketmaster. These cases highlight growing regulatory scrutiny over subscription models and ticketing practices that allegedly exploit consumers, potentially reshaping how these companies operate. The FTC’s complaint against Amazon, filed in 2023, accuses the e-commerce giant of using manipulative tactics to enroll millions of users into its Prime service without clear consent, while deliberately complicating the cancellation process.

According to details from the lawsuit, Amazon employed so-called “dark patterns”—design elements that trick users into unwanted purchases—during checkout flows, leading many to unwittingly sign up for the $139 annual Prime membership. The FTC alleges that internal documents show Amazon executives were aware of these issues but prioritized revenue over user experience, a claim that echoes broader concerns about tech platforms’ profit-driven strategies.

Amazon’s Prime Predicament

The trial, which commenced in federal court in Seattle, is expected to delve into evidence including consumer complaints and company emails that purportedly reveal Amazon’s resistance to simplifying cancellations. As reported by The New York Times, the proceedings will determine whether Prime’s popularity stems from genuine value or deceptive enrollment tactics. Regulators argue that the convoluted cancellation process, sometimes requiring up to 15 steps across multiple pages, violates consumer protection laws like the Restore Online Shoppers’ Confidence Act.

This isn’t Amazon’s first brush with regulatory heat; the FTC’s action builds on prior investigations into the company’s market dominance. Industry insiders note that a ruling against Amazon could force widespread changes in how subscriptions are marketed across the tech sector, potentially affecting competitors like Netflix or Spotify. The case also spotlights FTC Chair Lina Khan’s tenure, known for her critical views on Big Tech, as she pushes for stricter enforcement.

Ticketmaster’s Alleged Collusion Scheme

Shifting focus to the entertainment industry, the FTC, alongside attorneys general from seven states, filed a lawsuit against Live Nation and Ticketmaster on September 17, 2025, accusing them of tacitly colluding with ticket brokers to inflate prices. The complaint details how Ticketmaster allegedly turned a blind eye to scalpers using bots to hoard tickets, only to resell them at markups through the company’s own platforms, allowing double-dipping on fees.

Internal communications uncovered in the probe, as outlined in a Reuters report, suggest Ticketmaster provided brokers with tools and access that facilitated this scheme, costing fans millions. This follows years of consumer outcry over exorbitant ticket prices and hidden fees, amplified by high-profile events like Taylor Swift concerts where tickets vanished instantly, only to reappear at inflated rates.

Broader Implications for Consumer Rights

The lawsuit seeks to ban such practices and impose penalties, potentially disrupting Live Nation’s near-monopoly on live event ticketing. Experts believe this could lead to structural remedies, including divestitures, building on a separate antitrust case against Live Nation for monopolistic behavior. Posts on X (formerly Twitter) reflect public frustration, with users decrying Ticketmaster’s role in price gouging, though such sentiments underscore the cultural impact rather than legal facts.

Together, these FTC actions signal a pivotal moment for consumer protection in tech and entertainment. A victory for regulators could embolden further lawsuits, encouraging companies to prioritize transparency. For Amazon and Ticketmaster, the outcomes may redefine business models, ensuring that growth doesn’t come at the expense of unwitting customers. As trials progress, industry watchers will closely monitor how these cases influence innovation and competition in increasingly digitized markets.

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