Amazon Will Pay $2.5 Billion to Settle FTC Suit That Alleged ‘Dark Patterns’ in Prime Sign-Ups

In a landmark settlement, Amazon has agreed to pay $2.5 billion to settle a lawsuit brought by the Federal Trade Commission (FTC) that alleged the tech giant used “dark patterns” to deceive customers into signing up for its Prime subscription service.

The FTC accused Amazon of using misleading tactics to trick customers into unknowingly signing up for Prime memberships, resulting in unauthorized charges to their accounts.

As part of the settlement, Amazon will be required to provide refunds to affected customers and make changes to its Prime sign-up process to ensure transparency and prevent future deceptive practices.

Amazon has also agreed to appoint an independent monitor to oversee its compliance with the settlement terms and report back to the FTC regularly.

The $2.5 billion payout is one of the largest settlements ever reached between a company and the FTC, signaling a significant victory for consumer protection advocates.

Amazon has denied any wrongdoing in the case but has agreed to settle to avoid a lengthy and costly legal battle.

The settlement serves as a warning to other tech companies that engage in deceptive practices and underscores the importance of transparency in consumer transactions.

Consumer advocates have praised the FTC for holding Amazon accountable and hope that the settlement will lead to greater scrutiny of dark patterns in the tech industry.

Amazon’s reputation may suffer in the short term due to the settlement, but the company has stated its commitment to improving its practices and ensuring trust with its customers moving forward.

Overall, the settlement sets a precedent for corporate responsibility and reinforces the need for transparency and honesty in business dealings.