Amazon settles FTC Prime lawsuit

Amazon (company) has reached a $2.5 billion settlement with the United States — Federal Trade Commission over allegations that it tricked millions of customers into signing up for its Prime memberships and made it difficult to cancel. The settlement includes a $1 billion civil penalty, the largest in the agency's history, and $1.5 billion in refunds for affected consumers. The United States — Federal Trade Commission accused Amazon (company) of using 'dark patterns' and manipulative interfaces, such as unclear buttons and a convoluted cancellation process internally referred to as 'Iliad'. Senior executives Neil Lindsay and Jamil Ghani were named in the case, with internal documents showing awareness of the manipulative tactics. As part of the settlement, Amazon (company) is prohibited from misrepresenting subscription terms, must fully disclose costs, obtain express consent, and ensure an easy cancellation process. Amazon (company) denies wrongdoing but chose to settle to avoid a lengthy trial.