Amazon Will Pay $2.5 Billion to Settle FTC Suit That Alleged ‘Dark Patterns’ in Prime Sign-Ups

In a groundbreaking settlement, Amazon has agreed to pay $2.5 billion to the Federal Trade Commission to resolve allegations that the company used deceptive ‘dark patterns’ to trick customers into signing up for its Prime subscription service.

The FTC’s complaint, filed in federal court, accused Amazon of employing misleading design choices and confusing language on its website to make it difficult for users to opt out of Prime memberships or understand the true cost of the service.

The settlement represents one of the largest fines ever imposed on a company for deceptive practices and underscores the growing scrutiny of tech giants’ business practices.

In addition to the financial penalty, Amazon has agreed to implement significant changes to its Prime sign-up process, including making it easier for customers to cancel subscriptions and providing clearer information about membership fees.

The settlement comes after years of complaints from consumers and advocacy groups about Amazon’s use of dark patterns to manipulate customers into unwittingly signing up for Prime.

Amazon has denied any wrongdoing but acknowledged that the settlement was in its best interest to avoid a lengthy legal battle with the FTC.

The company has also pledged to work with the FTC to ensure compliance with all applicable laws and regulations moving forward.

Experts say the settlement could have far-reaching implications for other tech companies that use similar tactics to drive subscription sign-ups and could serve as a warning to the industry to prioritize transparency and consumer choice.

Overall, the settlement represents a significant victory for consumer protection advocates and a wake-up call for companies that rely on deceptive practices to drive profits.