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Amazon to Pay $2.5 Billion to Settle FTC Case Over Prime ‘Dark Patterns

Reached three days into a Seattle jury trial, the deal imposes a $1 billion penalty, sets $1.5 billion for refunds, mandates clearer signup, requires cancellation to be as easy as enrollment.

Overview

  • Roughly 35 million consumers are eligible for redress, with some automatic payments of about $51 expected within 90 days and a claims process available to others.
  • Amazon must add a clear decline option for Prime, drop wording like “No, I don’t want Free Shipping,” disclose price and auto‑renewal upfront, and match cancellation ease to enrollment.
  • The settlement stems from FTC allegations that Amazon violated the Restore Online Shoppers’ Confidence Act by using manipulative interfaces to enroll users and complicate cancellation.
  • Two executives, Jamil Ghani and Neil Lindsay, are barred from engaging in unlawful conduct related to the practices at issue, and an independent monitor will oversee compliance and refunds.
  • The stipulated order was filed in the U.S. District Court for the Western District of Washington and approved by the FTC on a 3–0 vote, while Amazon admitted no wrongdoing.