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 pattern” techniques to trick customers into signing up for its Prime subscription service.

The FTC lawsuit claimed that Amazon made it difficult for customers to cancel their Prime memberships, leading to consumers being unknowingly charged for the service.

As part of the settlement, Amazon will be required to provide clearer information to customers about the terms of its Prime membership program, as well as make it easier for customers to cancel their subscriptions.

In addition to the financial penalty, Amazon will also be required to submit regular compliance reports to the FTC to ensure it is following the terms of the settlement.

The settlement marks one of the largest fines ever imposed on a tech company for deceptive practices.

Amazon has not admitted to any wrongdoing in the settlement, but has agreed to the terms in order to resolve the dispute with the FTC.

The case has drawn attention to the use of dark patterns in online commerce, with critics arguing that companies like Amazon should be more transparent about their subscription practices.

Consumer advocates hope that the settlement will serve as a warning to other companies engaging in similar practices, and encourage greater transparency in online transactions.

Overall, the settlement highlights the importance of protecting consumers from deceptive practices in the digital marketplace.