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 alleged the company used “dark patterns” to deceive 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.

The settlement also requires Amazon to provide clearer information about its subscription services and make it easier for customers to cancel or modify their memberships. The company has agreed to implement changes to its Prime sign-up process to prevent deceptive practices in the future.

FTC Chair Lina Khan stated, “Companies must be held accountable when they use deceptive practices to manipulate consumers. This settlement sends a clear message that the FTC will not tolerate ‘dark patterns’ that trick consumers into unwanted purchases.”

Amazon has not admitted any wrongdoing as part of the settlement, but the company has committed to complying with the terms set forth by the FTC. The $2.5 billion payment is one of the largest in FTC history.

In response to the settlement, an Amazon spokesperson said, “We believe this $2.5 billion settlement is in the best interest of our customers and shareholders. We will continue to prioritize transparency and customer trust in all of our business practices moving forward.”

Consumer advocates have praised the FTC’s action against Amazon, hoping it will serve as a deterrent to other companies that engage in deceptive practices. The settlement underscores the importance of protecting consumers from misleading tactics in the digital marketplace.

Overall, the settlement between Amazon and the FTC marks a significant victory for consumer rights and fair business practices. It highlights the need for greater transparency and accountability in how companies market and sell their products and services.