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 tech giant used ‘dark patterns’ to manipulate customers into signing up for Prime memberships.

The lawsuit, filed in March 2021, claimed that Amazon made it difficult for customers to cancel their free trials of Prime and charged them without proper consent.

Amazon denied the allegations but agreed to settle the case to avoid a protracted legal battle. The $2.5 billion settlement is one of the largest in FTC history.

As part of the settlement, Amazon will also be required to make changes to its Prime sign-up process to ensure transparency and obtain proper consent from customers.

FTC Chair Lina Khan hailed the settlement as a victory for consumers and a warning to tech companies that engage in deceptive practices.

Amazon has faced increasing scrutiny over its business practices, and the settlement is seen as a significant step towards holding the company accountable.

The ‘dark patterns’ used by Amazon were designed to trick customers into signing up for Prime memberships and make it difficult for them to cancel, leading to unauthorized charges.

Consumer advocates have long criticized such practices, and the settlement is seen as a win for consumer rights.

Amazon’s payment of $2.5 billion will compensate customers who were affected by the alleged ‘dark patterns’ and send a message to other companies about the consequences of deceptive practices.

In conclusion, the settlement between Amazon and the FTC serves as a landmark case in the fight against ‘dark patterns’ and deceptive practices in the tech industry.