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 (FTC) lawsuit that alleged the company used “dark patterns” to trick customers into signing up for its Prime membership program.

The FTC accused Amazon of using misleading tactics, such as hiding the true cost of the Prime membership or making it difficult to cancel the subscription, to persuade customers to sign up for the service.

The settlement is one of the largest ever reached by the FTC and highlights the growing concern over the use of dark patterns in online commerce.

Amazon has denied any wrongdoing but agreed to the settlement to avoid a lengthy legal battle.

The $2.5 billion payment will be used to compensate customers who were misled by Amazon’s tactics and to fund future consumer protection initiatives.

FTC Chair Lina Khan called the settlement a “victory for consumers” and a warning to other companies that engage in deceptive practices.

Amazon has also committed to making changes to its website and marketing practices to ensure that customers are not misled in the future.

The settlement comes at a time when regulators are increasing scrutiny of tech companies’ business practices, particularly in the areas of data privacy and consumer protection.

It serves as a reminder to companies to be transparent and honest in their dealings with customers, and to avoid using dark patterns to manipulate behavior.

Overall, the settlement highlights the importance of ethical business practices and the need for strong enforcement of consumer protection laws in the digital age.