Amazon Will Pay $2.5 Billion to Settle FTC Suit That Alleged ‘Dark Patterns’ in Prime Sign-Ups

Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the Federal Trade Commission (FTC) that alleged the company used deceptive “dark patterns” to trick customers into signing up for its Prime subscription service.

The FTC claimed that Amazon made it difficult for customers to cancel their Prime memberships, leading to unwanted charges on their accounts.

As part of the settlement, Amazon has agreed to make it easier for customers to cancel their Prime memberships and provide clearer information about the terms of the service.

The $2.5 billion payment is one of the largest settlements ever reached in a consumer protection case, underscoring the seriousness of the allegations against Amazon.

In addition to the monetary penalty, Amazon will be subject to increased oversight by the FTC to ensure compliance with consumer protection laws.

The settlement serves as a warning to other companies that engage in deceptive practices and underscores the importance of transparency in customer interactions.

Amazon has not admitted to any wrongdoing as part of the settlement but has agreed to implement changes to its business practices to address the allegations made by the FTC.

The lawsuit highlights the growing scrutiny faced by tech companies over their practices and the need for stronger enforcement of consumer protection laws.

Customers who believe they were wrongly charged for Amazon Prime subscriptions will have the opportunity to seek restitution as part of the settlement agreement.

Overall, the settlement represents a significant victory for consumers and a step toward holding big tech accountable for their actions.