Amazon Fined $2.5 Billion for Deceptive Prime Practices
If you've ever felt misled into signing up for an Amazon Prime subscription or struggled to cancel it, you're not alone. The Federal Trade Commission (FTC) confirmed that the process has long been unnecessarily complicated.
The FTC Settlement
Following a 2023 lawsuit, Amazon agreed to a $2.5 billion settlement. Of this amount, $1.5 billion will reimburse affected consumers, while $1 billion serves as a civil penalty.
Although Amazon did not admit to wrongdoing, the agreement requires clear options to decline Prime during checkout and a more straightforward cancellation process.
Amazon’s Response
“Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers,” said Mark Blafkin, Amazon senior manager.
“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.”
The FTC’s Allegations
The FTC accused Amazon of using so-called “dark patterns” — manipulative design tactics — to steer users into Prime subscriptions and make cancellation excessively difficult.
Consumers can soon expect a fairer and more transparent process for managing their Prime memberships as part of this settlement.
Author’s summary: The FTC’s action forces Amazon to simplify Prime membership management and compensates customers for deceptive signup practices.