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

Amazon has agreed to pay a record-breaking $2.5 billion to settle a Federal Trade Commission (FTC) lawsuit that alleged the company used ‘dark patterns’ to manipulate Prime sign-ups.

The settlement comes after a lengthy investigation by the FTC, which found that Amazon employed deceptive tactics to make it difficult for users to cancel their Prime memberships or opt out of recurring charges.

In response to the settlement, Amazon has agreed to change its practices and provide clearer information to customers about their Prime subscriptions.

The company has also pledged to offer refunds to customers who were affected by the deceptive practices.

FTC Chair Lina Khan stated that the settlement sends a strong message to companies that engage in deceptive practices and violate consumer protection laws.

Amazon’s $2.5 billion settlement is the largest ever agreed upon by the company and marks a significant win for consumer protection advocates.

The FTC has stated that they will continue to monitor Amazon’s practices to ensure compliance with the settlement terms.

This case highlights the importance of transparency and honesty in consumer interactions, and serves as a warning to other companies who engage in similar tactics.

Overall, the settlement represents a victory for consumers and a step in the right direction for holding tech giants accountable for their actions.