By In a significant enforcement victory, the Federal Trade Commission secured a $2.5 billion agreement with Amazon to resolve claims that the company used deceptive enrollment designs to push users into Prime and made it hard to cancel.
The settlement divides into $1 billion in penalties and $1.5 billion in consumer restitution. Approximately 35 million Prime users may qualify for a $51 automatic refund if they meet eligibility criteria involving minimal use of benefits and deceptive sign-up flows. Additional claimants can submit forms for review.
As part of the pact, Amazon must revamp its subscription processes: add a clear “decline Prime” choice, simplify cancellation, and undergo independent oversight. The company, while denying liability, accepted the changes to avoid protracted litigation.
Significance & Reactions
- The case is widely seen as a turning point in the battle against “dark patterns” online.
- It may embolden regulators to target other subscription services with similar practices.
- Amazon’s settlement avoids a jury verdict but comes amid intense scrutiny of tech business models.