Recently, Amazon agreed to pay $2.5 billion to settle a lawsuit filed by the Federal Trade Commission (FTC), which accused the company of deceptively enrolling millions of users into its Prime service and making the cancellation process unnecessarily difficult.
Out of that massive amount, $1 billion will go toward civil penalties, while the remaining $1.5 billion will be used as refunds for affected customers. The trial began this week in Seattle, after the case was originally filed in 2023, and Amazon did not admit any liability in the settlement.
Some of the questioned practices include the use of so-called “dark patterns”, interfaces designed to enroll users without their clear consent, and complicated cancellation procedures intended to discourage customers from leaving Prime.
Does this settlement mean Amazon was found guilty?
The truth is no. Although the company accepted the agreement, Amazon did not admit guilt in the charges. The settlement avoids a full trial but includes requirements for Amazon to improve transparency in the sign-up process and make it easier for users to cancel their Prime subscriptions.
