Amazon to Pay $2.5 Billion to Settle FTC Over Prime-Related Dark Patterns

Amazon agreed to pay $2.5 billion to settle a case with the Federal Trade Commission (FTC) over deceptive Prime enrollment practices. In a lawsuit filed in 2023, the FTC argued that Amazon used deceptive methods to sign up consumers for Prime subscriptions and made it exceedingly difficult to cancel them.

“The FTC alleged Amazon created confusing and deceptive user interfaces to lead consumers to enroll in Prime without their knowledge. Compounding these deceptive enrollment practices, Amazon also created a complex and difficult process for consumers seeking to cancel their Prime subscription, with the goal of preventing consumers from cancelling Prime,” the press release from the FTC reads.

Amazon will be paying a $1 billion civil penalty, the largest ever in a case involving an FTC rule violation. The online retailed will also pay $1.5 billion in refunds back to consumers, with the FTC estimating that around 35 million consumers have been impacted by “unwanted Prime enrollment or deferred cancellation.”

The company is also required to stop its “unlawful practices” and make it as easy for consumers to cancel a Prime subscription as it is to sign up for it. In practice, Amazon will no longer be able to mislead consumers with phrases like “No, I don’t want Free Shipping” when they try to cancel their Prime subscription.

In its press release, the FTC explained that documents discovered in the lead-up to trial revealed that Amazon executives and employees knowingly discussed these dark patterns, with comments like “subscription driving is a bit of a shady world.” Still, the company denied any wrongdoing.

“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers. We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world. We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years,” said Amazon spokesperson Mark Blafkin.