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) regarding its Prime sign-up practices. The FTC alleged that Amazon employed "dark patterns" - deceptive user interface designs that manipulated customers into signing up for Prime memberships, often without their knowledge or consent. As part of the settlement, Amazon will pay $30 million to the FTC and an additional $2.5 billion to directly compensate affected consumers. The company has also agreed to make changes to its sign-up process, including obtaining clear and informed consent from customers before enrolling them in Prime. The settlement marks a significant victory for the FTC in its crackdown on deceptive digital marketing tactics. It sends a strong message that companies cannot use manipulative practices to boost their subscription numbers, and must be transparent in their dealings with consumers.