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 “dark patterns” in its design and user interface to deceive customers into signing up for Amazon Prime memberships.

The FTC had accused Amazon of making it difficult for users to cancel Prime memberships, leading them to unknowingly continue paying for the service. This practice, known as a “dark pattern,” is a deceptive design technique used to manipulate users.

As part of the settlement, Amazon will pay $2.5 billion, the largest fine ever imposed by the FTC, and will be required to make changes to its subscription practices to ensure customers have a clear understanding of what they are signing up for.

In a statement, Amazon said it “chose to settle this matter to avoid the cost and distraction of litigation” and maintained that it did nothing wrong. The company also agreed to provide refunds to customers who were affected by the alleged deceptive practices.

The settlement highlights the importance of transparency and honesty in online business practices, and serves as a warning to other companies to be mindful of how they design their user interfaces and subscription services.

The FTC’s investigation into Amazon’s practices sheds light on the growing concern over dark patterns and deceptive design in e-commerce, and underscores the need for regulatory oversight to protect consumers from such practices.

Overall, the settlement serves as a reminder to companies that engaging in deceptive practices, even if unintentional, can have serious consequences and damage a company’s reputation and bottom line.