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

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

The FTC accused Amazon of making it difficult for customers to cancel their free trial or paid membership, using confusing language and design elements to mislead users into believing they were signing up for a one-time purchase or discount offer.

As part of the settlement, Amazon will be required to make it easier for customers to cancel their Prime subscriptions and provide clearer information about the terms and conditions of membership.

The $2.5 billion payment is the largest ever in an FTC consumer protection case, underscoring the seriousness of the allegations against Amazon.

FTC Chair Lina Khan called Amazon’s practices “unfair and deceptive,” saying the company had taken advantage of vulnerable consumers through its use of dark patterns.

Amazon has denied any wrongdoing but agreed to the settlement to avoid a lengthy and costly legal battle with the FTC.

The settlement is a significant victory for consumer advocates who have been pushing for greater oversight of tech companies and their use of dark patterns to manipulate user behavior.

This case serves as a warning to other companies that engage in similar practices, highlighting the potential consequences of deceptive marketing tactics.

Amazon has pledged to improve its practices and be more transparent with customers in the future, signaling a shift towards greater accountability in the tech industry.

Overall, the settlement represents a major win for consumer protection and a step towards holding tech giants accountable for their actions.