"The Federal Trade Commission on Thursday announced a $2.5 billion settlement with Amazon just days into a trial over the tech giant's alleged use of deceptive practices that the commission said for years tricked millions of consumers into signing up for a Prime membership without their knowledge, and made it unreasonably difficult for them to cancel the service. But the most exuberant celebrations Thursday may be occurring within the executive suites at Amazon's D.C. and Seattle headquarters."
"The case, first filed by the FTC in 2023 under then-chair Lina Khan, outlined a variety of ways that Amazon utilized misleading web design tactics, known as "dark patterns," to get online shoppers to unknowingly enroll in its Prime program when making a purchase, or make it frustratingly difficult for someone to cancel a Prime membership (which cost $139 a year when the case was filed)."
The Federal Trade Commission secured a $2.5 billion settlement with Amazon after alleging years of deceptive tactics that enrolled millions into Prime without their knowledge and made cancellations unreasonably difficult. Regulators identified misleading web-design "dark patterns" and an internally used, four-page, six-click, fifteen-option cancellation flow nicknamed "Iliad" that distracted or derailed customers. Prime membership cost $139 annually when the matter was filed. Amazon executives in D.C. and Seattle reacted with relief. A change in FTC leadership raised settlement expectations, but no pretrial deal occurred and a judge granted the FTC a partial win.
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