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 Federal Trade Commission (FTC) lawsuit that accused the company of using ‘dark patterns’ to trick customers into signing up for its Prime subscription service.

The lawsuit alleged that Amazon made it difficult for customers to cancel their Prime membership, leading to unauthorized charges on their credit cards. The company was also accused of using deceptive tactics, such as hiding the true cost of the subscription and making it hard for customers to opt out of auto-renewal.

As part of the settlement, Amazon will pay $2.5 billion to compensate affected customers and make changes to its Prime sign-up and cancellation process. The company has also agreed to provide clearer information about the cost of the subscription and make it easier for customers to cancel.

Amazon has denied any wrongdoing in the case but said it agreed to settle to avoid a lengthy legal battle. The company emphasized that it remains committed to providing a positive experience for its customers and will continue to enhance its policies and practices.

This settlement serves as a reminder to companies about the importance of transparency and customer choice in subscription services. It also highlights the FTC’s ongoing efforts to hold companies accountable for deceptive practices and protect consumers from exploitation.

Overall, the $2.5 billion settlement represents a significant financial penalty for Amazon and sends a strong message about the consequences of using dark patterns to manipulate customers. It is a costly lesson for the tech giant but one that may ultimately lead to greater trust and satisfaction among its user base.