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 lawsuit filed by the Federal Trade Commission (FTC) that alleged the company used ‘dark patterns’ to deceive customers into signing up for its Prime subscription service.

The settlement comes after a three-year investigation by the FTC, which found that Amazon’s sign-up process for Prime memberships used misleading tactics to push customers into unknowingly subscribing to the service.

As part of the settlement, Amazon will be required to pay $2.5 billion in restitution to affected customers and reform its sign-up process to make it clearer and more transparent.

Amazon has also agreed to submit compliance reports to the FTC for the next 20 years to ensure that it is following the terms of the settlement.

The settlement marks one of the largest ever reached by the FTC in a consumer protection case and sends a strong message to companies that engage in deceptive practices.

Amazon has not admitted to any wrongdoing as part of the settlement, but has agreed to the terms to avoid a lengthy legal battle with the FTC.

The case highlights the growing concern among regulators and consumers about ‘dark patterns’ – design techniques used to manipulate users into taking actions they may not have intended.

Going forward, it is expected that companies will face increased scrutiny over their use of dark patterns and other deceptive practices, with regulators taking a more proactive stance to protect consumers.

Overall, the settlement serves as a reminder that companies must be vigilant in their practices and ensure that they are acting in good faith towards their customers.