Amazon is paying $2.5 billion to settle FTC claims it duped customers into signing up for Prime

Amazon will pay a record $2.5 billion settlement to the Federal Trade Commission (FTC) to resolve allegations that the company tricked consumers into signing up for its Prime membership program without their consent and made it difficult for them to cancel. The settlement includes a $1 billion civil penalty and $1.5 billion in customer refunds, impacting an estimated 35 million consumers. As part of the agreement, Amazon will be prohibited from using certain "dark patterns" (deceptive design practices) to dissuade customers from canceling Prime memberships and will be required to provide clearer information about the subscription during the sign-up process. The FTC stated that this is the largest civil penalty it has ever obtained and the second-highest restitution award. Amazon maintains that it has followed the law but agreed to the settlement to "move forward and focus on innovating for customers."