Amazon to Pay $2.25 Million Amidst FTC Allegations of 'Dark Patterns' in Prime Subscriptions

Amazon, the e-commerce giant, is set to pay a substantial US$2.25 million to resolve allegations brought forth by the Federal Trade Commission (FTC). The regulatory body accused Amazon of employing deceptive "dark patterns" to allegedly trick millions of consumers into signing up for its popular Prime subscription service and subsequently making the cancellation process unduly difficult.

The FTC's complaint, filed in a Washington federal court, painted a picture of calculated deception, alleging that Amazon engaged in "tricking and trapping" consumers into recurring subscriptions.

According to the commission, Amazon's tactics made it exceedingly challenging for customers to opt out, even when they explicitly desired to do so. The complaint highlighted a multi-step, often confusing, cancellation process, a stark contrast to the straightforward signup experience.

Adding to the intrigue, the FTC's filing referenced an internal Amazon project known as "Project Iliad." This initiative, described by the FTC, was allegedly designed to complicate the Prime cancellation process further, making it a labyrinthine task for subscribers.

The commission stated that Amazon's practices not only enrolled individuals without clear consent but also continued to charge them, thereby creating a significant consumer protection issue.

In response to these serious allegations, Amazon vehemently denied any wrongdoing. A spokesperson for the company, while acknowledging the settlement, asserted that the claims of "tricking" customers were a "falsity." Amazon emphasized its commitment to a transparent and intuitive signup process for Prime, as well as an equally clear and simple cancellation mechanism.

Despite their denial, Amazon opted to reach a settlement to avoid prolonged litigation and focus on innovation for its customers.

The proposed settlement, which still awaits court approval, mandates Amazon to pay US$2.25 million. This agreement marks a significant moment in the ongoing scrutiny of large tech companies' subscription practices and their adherence to consumer protection laws.

While Amazon maintains its innocence, this resolution underscores the FTC's unwavering commitment to combating deceptive marketing and ensuring fair treatment for consumers in the digital marketplace.