Amazon’s $2.5 Billion Prime Problem: A Dark Pattern Debacle with a Pricey Punchline
Amazon will pay $2.5 billion to settle claims by the U.S. Federal Trade Commission (FTC) that it used dark patterns to trick millions into Prime subscriptions. The settlement includes a $1 billion penalty and $1.5 billion in refunds, ensuring that Amazon’s sneaky subscription tactics become a thing of the past.
Hot Take:
Looks like Amazon’s Prime Day just turned into Prime Pay Day for the FTC! The retail behemoth is forking over a whopping $2.5 billion after playing hide and seek with their subscription cancel button. Who knew that signing up for Prime came with a side of Greek mythology? Next time, maybe they should just include an “Iliad” with every membership purchase!
Key Points:
- Amazon to pay $2.5 billion to resolve FTC claims of deceptive Prime enrollment practices.
- The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to affected consumers.
- FTC accused Amazon of using “dark patterns” and making Prime cancellations as challenging as climbing Mount Olympus.
- The FTC lawsuit highlighted Amazon’s use of subscription traps and a cancellation maze dubbed “Iliad.”
- Amazon recently also settled a $25 million fine for violating children’s privacy laws with Alexa.
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