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 lawsuit brought by the Federal Trade Commission (FTC) alleging that the tech giant used ‘dark patterns’ to deceive customers into signing up for its Prime membership program.
The lawsuit, filed in a federal court in Seattle, accused Amazon of making it difficult for customers to cancel their Prime memberships, leading to unwanted charges on their credit cards.
The settlement represents one of the largest fines ever imposed on a tech company for deceptive practices, signaling a major victory for consumer advocacy groups.
Under the terms of the settlement, Amazon will be required to provide clearer information to customers about the terms of its Prime membership program and make it easier for them to cancel their subscriptions.
The company will also be subjected to third-party audits to ensure compliance with the settlement agreement over the next five years.
The FTC’s investigation into Amazon’s use of dark patterns began in 2018 after complaints from consumers about hidden fees and misleading subscription terms.
In a statement, Amazon denied any wrongdoing but agreed to settle the case to avoid a lengthy legal battle with the FTC.
The settlement is seen as a major victory for consumer rights advocates, who have long called for greater transparency and accountability from tech companies like Amazon.
This landmark case could set a precedent for future lawsuits against big tech firms that engage in deceptive practices to boost their bottom line.
Overall, the $2.5 billion settlement sends a strong message that companies must be held accountable for their actions and prioritize consumer protection over profits.
