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 trick customers into signing up for its Prime subscription service.

The FTC accused Amazon of making it difficult for customers to cancel their Prime memberships and misleading them into signing up for the service without clearly disclosing the terms and conditions. The lawsuit also alleged that Amazon failed to provide adequate customer support for Prime members who wanted to cancel their subscriptions.

As part of the settlement, Amazon has agreed to pay $2.5 billion in restitution to customers who were affected by the alleged deceptive practices. The company has also promised to make changes to its Prime sign-up process to ensure that customers are not misled into subscribing to the service.

In a statement, Amazon said it was pleased to have reached a resolution with the FTC and that it was committed to providing a positive experience for all its customers. The company added that it takes customer trust and satisfaction seriously and will continue to work to improve its processes and policies.

The settlement is one of the largest ever reached between a company and the FTC and sends a strong message that deceptive practices will not be tolerated. It serves as a reminder to companies that they must be transparent and honest in their dealings with customers to avoid facing similar legal action in the future.

Overall, the settlement between Amazon and the FTC highlights the importance of protecting consumers from deceptive practices and holding companies accountable for their actions. It serves as a wake-up call to businesses that engaging in ‘dark patterns’ and other misleading tactics will not go unnoticed and will have serious consequences.