Amazon Settles FTC 'Dark Patterns' Suit for $2.5B

Amazon agreed to settle the FTC's landmark lawsuit alleging it used “dark patterns” to enroll millions of customers in Prime by paying $1 billion in civil penalties, providing $1.5 billion in customer refunds, and changing its cancellation process, without admitting wrongdoing. The deal came as a federal jury trial was beginning in Seattle, where the FTC had accused Amazon of obscuring price and auto‑renewal disclosures, collecting billing information before disclosing subscription terms, and maintaining a multi‑step cancellation flow that affected tens of millions of users. Amazon denied the allegations, saying it clearly disclosed Prime's terms and provided multiple cancellation methods. The settlement resolves the FTC’s claims in this case but could reshape enforcement of subscription practices; Amazon still faces a separate FTC monopoly lawsuit set for trial in 2027.