Deal Reached

Amazon agreed to pay $2.5B to settle Federal Trade Commission charges of deceptive Prime membership practices. 

Context

The FTC filed its lawsuit against Amazon in 2023, alleging that the company used “dark patterns” – deceptive website designs – to trick consumers into unintentionally enrolling in Prime. The agency claimed Amazon displayed prominent buttons like “Get FREE Two-Day Shipping” that enrolled users without disclosing recurring membership costs, while making the option to decline less visible. The FTC also alleged that canceling Prime required navigating what Amazon employees internally called the “Iliad Flow,” a long and difficult process that involved a series of offers and warnings.

Historic Settlement 

Amazon reached a $2.5B settlement with the FTC on Thursday, just days after a jury trial began this week in Seattle.