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 e-commerce giant used “dark patterns” to trick customers into signing up for its Prime service.

The FTC accused Amazon of using deceptive tactics to convince customers to sign up for Prime, such as making it difficult to cancel the service or misleading customers about the cost of membership.

The settlement is the largest in the FTC’s history and will require Amazon to pay $2.5 billion in restitution to customers who were affected by the alleged deceptive practices.

In addition to the financial penalty, Amazon will also be required to implement changes to its sign-up process for Prime to make it more transparent and easier for customers to understand.

Amazon has denied any wrongdoing in the case but chose to settle to avoid a lengthy legal battle with the FTC.

Consumer advocates hailed the settlement as a victory for consumers, saying it sends a message to other companies that deceptive practices will not be tolerated.

The settlement is a reminder that companies must be transparent and ethical in their dealings with customers, and that the FTC will take action against those who engage in deceptive practices.

Amazon has said it is committed to improving its practices and will work to ensure that its sign-up process for Prime is clear and honest.

The settlement is a significant development in the ongoing debate over the use of “dark patterns” by tech companies to manipulate consumers into making purchases or signing up for services.

It serves as a warning to other companies that deceptive practices will not go unpunished and that consumers have the right to fair and transparent treatment.