If you’ve ever struggled to distinguish between Amazon’s full Prime membership and its standalone Prime Video service, you’re not alone. A new lawsuit filed by the Federal Trade Commission (FTC) alleges that the retail giant’s website design may have confused customers into signing up for the more expensive full Prime subscription when they were merely looking to enjoy streaming privileges.

So, what’s the mix-up? For clarity, Prime Video is Amazon’s streaming service that allows customers to watch and rent shows and movies for an $8.99 monthly fee. It’s a distinct product from a full Amazon Prime membership, which comes with a host of other benefits but costs more at $14.99 a month.

According to the FTC’s complaint, signing up for Prime Video alone could be a Herculean task due to Amazon’s site design. The issue in question is the colored buttons that the FTC alleges subtly nudged customers towards a full Amazon Prime subscription, rather than the cheaper video-only service.

By leveraging some customers’ confusion over the difference between ‘Prime’ and ‘Prime Video,’ the FTC contends that the enrollment process lacked sufficient clarity and left some customers inadvertently enrolled in the more expensive option.

But Amazon begs to differ. The company spokesperson dismissed the FTC’s allegations as “false on the facts and the law,” insisting that customers cherish Prime and that the sign-up and cancellation process is transparent.

In response to customer feedback, Amazon did launch an initiative last year named ‘Project Clean Slate’ to help customers better distinguish what content on Prime Video was free or not. This insider-revealed initiative aimed to reimagine the Prime Video customer experience across devices and services, focusing on simplifying content discovery for Prime members.

The FTC’s lawsuit also charges Amazon with making the cancellation of Prime memberships a tricky affair for customers. However, this legal drama unfolds, one thing is clear – when signing up for services or subscriptions online, it’s crucial to read the fine print, understand what you’re getting, and know how much it’s going to cost. Stay tuned as we continue to monitor this developing story.