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Amazon Reaches $2.5 Billion FTC Settlement Over Prime Enrollment Tactics

The deal caps a two-year FTC case over alleged dark patterns in Prime sign-ups, imposing compliance changes.

Overview

  • Amazon will pay a $1 billion civil penalty and $1.5 billion for consumer refunds, without admitting wrongdoing.
  • Refunds target an estimated 35 million customers, with payouts up to about $51 per valid claim and claims details to be set by the court.
  • The order requires a clear option to decline Prime, simpler cancellation using the same method as sign‑up, and prominent disclosures on price, auto‑renewal and charges.
  • Amazon must drop misleading prompts such as the 'No, I don’t want Free Shipping' button and fund an independent third‑party monitor to oversee compliance.
  • The settlement was announced days into a Seattle jury trial stemming from the FTC’s 2023 lawsuit; restrictions also apply to executives Jamil Ghani and Neil Lindsay.