Amazon Is Paying $2.5 Billion To Settle Ftc Claims It Duped Customers Into Signing Up For Prime

Amazon will salary a grounds civilian punishment to settee a lawsuit pinch nan Federal Trade Commission. The agency accused Amazon of tricking consumers into signing up for a Prime membership without their consent (and making it difficult for customers to cancel) successful a suit revenge successful 2023.

To settee nan charges, Amazon has agreed to salary a $1 cardinal civilian punishment and $1.5 cardinal to refund customers. The institution besides agreed to "ease unlawful enrollment and cancellation practices for Prime," per nan FTC.

The agency says nan civilian punishment is nan largest ever for a lawsuit involving a breach of its rules — it had accused Amazon of violating nan FTC Act and nan Restore Online Shoppers’ Confidence Act. The $1.5 cardinal successful user redress will supply "full alleviation for nan estimated 35 cardinal consumers impacted by unwanted Prime enrollment aliases deferred cancellation," nan FTC said. It added that this is nan second-highest restitution grant it has ever obtained.

Moreover, Amazon will person to extremity utilizing immoderate of nan dark patterns (i.e. deceptive creation practices) that prevented customers from easy canceling Prime memberships.. For instance, it will nary longer show a fastener that reads, "No, I don’t want Free Shipping" during nan cancellation flow. Instead, it will person to show a "a clear and conspicuous fastener for customers to diminution Prime," per nan position of nan settlement.

Amazon will besides person to supply clearer accusation astir a Prime subscription to consumers during nan sign-up process. This will see specifications astir nan price, whether nan subscription auto-renews and how to cancel.

Engadget has contacted Amazon for comment.