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 lawsuit that alleged the company used deceptive ‘dark patterns’ to sign up customers for its Prime membership program.

The FTC accused Amazon of making it difficult for customers to cancel their Prime memberships, using tactics such as confusing design, hidden buttons, and misleading information.

Under the terms of the settlement, Amazon will pay $2.5 billion in restitution to customers who were affected by these practices.

Amazon has also agreed to change its practices to make it easier for customers to cancel their Prime memberships and provide clearer information about subscription fees.

The settlement is one of the largest ever reached between a company and the FTC, highlighting the importance of transparency and fairness in online business practices.

Amazon has stated that it is committed to improving its customer experience and will continue to work with regulators to ensure compliance with consumer protection laws.

The FTC’s lawsuit is a reminder to companies that they must be transparent and honest in their dealings with customers, and that deceptive practices will not be tolerated.

Overall, the settlement serves as a significant step towards holding companies accountable for their actions and protecting consumers from misleading practices.

Amazon’s agreement to pay $2.5 billion demonstrates the company’s willingness to take responsibility for its actions and make amends for any harm caused to consumers.

In conclusion, the settlement serves as a reminder to all businesses that they must prioritize ethical and transparent practices to build trust with their customers and avoid costly legal battles.