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 deceptive ‘dark patterns’ to trick customers into signing up for its Prime membership program.

The FTC accused Amazon of making it difficult for customers to cancel their Prime memberships, leading to millions of customers unknowingly being charged for the service.

The settlement includes $2.5 billion in refunds to customers who were affected by the alleged deceptive practices.

In addition to the financial penalty, Amazon has agreed to make changes to its Prime sign-up process to make it easier for customers to cancel their memberships.

FTC Chair Lina Khan said in a statement, “We are pleased that Amazon has agreed to settle this case and compensate customers who were harmed by its deceptive practices.”

Amazon has not admitted any wrongdoing as part of the settlement, but has agreed to refrain from using deceptive dark patterns in the future.

The settlement marks one of the largest financial penalties ever imposed by the FTC on a tech company for deceptive practices.

Amazon said in a statement that it is committed to providing a positive customer experience and will work to ensure that its sign-up processes are clear and transparent.

The company also noted that it has already made changes to its Prime sign-up process, including providing clearer information on how to cancel a membership.

Overall, the settlement is seen as a win for consumer advocates who have long criticized the use of dark patterns to manipulate customers into signing up for services they may not want.