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 lawsuit brought by the Federal Trade Commission (FTC) that alleged the company used ‘dark patterns’ to trick 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 many to unknowingly continue paying for the service.

As part of the settlement, Amazon will be required to make it easier for customers to cancel their Prime subscriptions and will be subject to monitoring by the FTC.

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

The $2.5 billion payment is among the largest-ever settlements in a consumer protection case.

The case has brought renewed attention to the use of ‘dark patterns’ in e-commerce, where companies use design techniques to nudge consumers into making purchases or signing up for services.

The FTC has been cracking down on companies that use deceptive practices to boost profits at the expense of consumers.

Amazon’s settlement with the FTC serves as a reminder that companies must be transparent and ethical in their business practices.

Consumers should be aware of the tactics used by companies to manipulate their behavior and make informed decisions when making purchases online.

As part of the settlement, Amazon has also agreed to provide refunds to customers who were charged for Prime memberships without their consent.