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 accused Amazon of making it difficult for customers to cancel their Prime subscriptions by using confusing language, hidden options, and other tactics that misled consumers into paying for the service without their explicit consent.

As part of the settlement, Amazon will also be required to make changes to its subscription process to ensure that customers understand the terms and conditions before signing up for any recurring charges.

This settlement marks one of the largest fines ever imposed by the FTC on a tech company for deceptive practices and sends a strong message that companies will be held accountable for using manipulative tactics to boost their subscription numbers.

In a statement, Amazon said it was pleased to have resolved the matter and that it takes customer trust and transparency seriously.

Consumer advocates and privacy experts have welcomed the settlement, saying it demonstrates the FTC’s commitment to protecting consumers from deceptive practices in the digital economy.

Amazon’s Prime subscription service offers fast shipping, streaming video, music, and other benefits for a monthly or yearly fee.

The company has faced criticism in the past for its aggressive tactics to retain and grow its Prime membership base, including automatically renewing subscriptions and making it difficult for customers to cancel.

The settlement comes as regulators around the world are increasingly scrutinizing tech companies for their use of dark patterns and other deceptive practices to manipulate consumer behavior.

Amazon’s willingness to pay such a hefty fine and implement changes to its subscription process could serve as a warning to other companies that engage in similar tactics.