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’ in its Prime sign-up process.

The FTC accused Amazon of making it difficult for users to cancel their Prime memberships, leading to unauthorized charges on their accounts.

Dark patterns are deceptive design elements that manipulate or trick users into taking certain actions, often against their best interests.

Amazon denied any wrongdoing but chose to settle the lawsuit to avoid a lengthy legal battle.

As part of the settlement, Amazon will pay $2.5 billion in restitution to affected customers and implement new policies to ensure transparency and fair practices in its sign-up process.

The settlement marks a significant victory for consumer protection advocates who have been calling for more regulation of tech companies’ use of dark patterns.

Amazon’s use of dark patterns in its Prime sign-ups sparked a national conversation about the ethics of manipulating users for financial gain.

The settlement sends a strong message to other companies that deceptive practices will not be tolerated by regulators.

Amazon has pledged to work more closely with the FTC to ensure compliance with consumer protection laws in the future.

The $2.5 billion settlement is one of the largest ever reached in a consumer protection case, underscoring the seriousness of the allegations against Amazon.