Core Insights - Amazon reached a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of misleading customers about Amazon Prime subscriptions, marking one of the largest consumer protection settlements in U.S. history [1][2] Settlement Details - The settlement allocates $1.5 billion to a fund for repaying eligible subscribers and $1 billion as a civil penalty [2] - Amazon is required to implement a "clear and conspicuous" option to decline Prime during checkout and to simplify the cancellation process [2] FTC Allegations - The FTC accused Amazon of employing "dark patterns" to manipulate consumers into subscribing to Prime and complicating the cancellation process, violating Section 5 of the FTC Act and the Restore Online Shoppers' Confidence Act [4][5] Eligibility for Payouts - The settlement applies to customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025, specifically those who used a "challenged enrollment flow" or faced difficulties in canceling their memberships [6] - Specific enrollment pages were identified by the FTC, and claimants must not have used more than 10 Prime benefits in any 12-month period to qualify for payouts [7] Payment Process - Customers who signed up through challenged processes and used no more than three Prime benefits within a year will receive automatic payments from Amazon within 90 days [8] - Other eligible customers must file claims, and Amazon is obligated to notify them within 30 days of making automatic payments [8] Payment Amounts - Payouts to eligible claimants will be capped at $51, which may be reduced based on the number of Prime benefits utilized during the subscription [9]

Dark patterns can make consumers behave in self-defeating ways. They can do the same for firms https://t.co/SCalsaNPZO ...

Dark patterns, which manipulate users into actions they might not otherwise take, can be very effective, at least in the short term. But they can also produce unintended negative consequences https://t.co/g9ZkJSdY2d ...

On Monday, the Federal Trade Commission's lawsuit against Amazon began what was expected to be a lengthy trial. By Thursday, Amazon agreed to a whopping $2.5 billion settlement for misleading customers who signed up for Amazon Prime.The FTC said $1.5 billion will go into a fund to repay eligible subscribers, with the remaining $1 billion collected as a civil penalty. The settlement requires Amazon to add a "clear and conspicuous" option to decline Prime during checkout and to simplify the cancellation proce ...

Amazon has agreed to pay $2.5 billion to settle a lawsuit with the Federal Trade Commission over claims that it tricked millions of people into signing up for Prime, its paid subscription service, and made cancellation too difficult. The FTC said $1.5 billion will go into a fund to repay eligible subscribers, with the remaining $1 billion as a civil penalty. The settlement requires Amazon to add a "clear and conspicuous" option to decline Prime during checkout and to simplify the cancellation process."Amazo ...

Amazon has agreed to pay $2.5 billion to settle a lawsuit alleging it misled customers into paying for Prime subscriptions, the Federal Trade Commission (FTC) announced Thursday. The announcement came days into a trial between the tech giant and the FTC. Under the terms of the settlement, Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds to consumers, and cease any unlawful enrollment and cancellation practices for Prime.The settlement figure is less than 1% of Amazo ...

It’s a different kind of Amazon trial — not the kind that lets you try out the product. On Monday, a jury in Seattle will begin hearing a case that could change how Amazon runs Prime, its $139-a-year subscription. Some 200 million people worldwide subscribe to Prime for quick shipping, streaming entertainment, closely-watched Prime Day deals , and other membership benefits — with the majority of customers concentrated in the U.S.. For Amazon, Prime represents a business worth over $40 billion in annual ...

Group 1 - The Federal Trade Commission (FTC) is suing Amazon for allegedly deceptive subscription practices related to its Amazon Prime program, claiming consumers were misled into signing up without proper knowledge or consent [2][3] - The FTC seeks civil penalties, consumer refunds, and a court order to prevent Amazon from using confusing subscription practices in the future [3] - Amazon denies the allegations, asserting that it has always been transparent about Prime's terms and provides clear options for customers to cancel their memberships [3][4] Group 2 - The case is seen as a significant test of the FTC's efforts to combat "dark patterns" in eCommerce, which are tactics that manipulate consumer behavior for business benefit [5] - Legal experts suggest that if Amazon's practices are found to violate the law, it could lead to broader scrutiny across the eCommerce industry [5] - In addition to the legal challenges, Amazon is preparing for its upcoming Prime Day sales event in October, which will help gauge consumer spending and inform inventory decisions for the holiday season [6][7]

Core Insights - A study from the University of Chicago reveals that turning off Netflix's autoplay feature results in participants watching an average of 18 minutes less per viewing session, highlighting the impact of autoplay on user behavior and consumption patterns [1][4][5] Group 1: Study Findings - The research involved 76 participants who were moderate to heavy Netflix users, with half turning off autoplay and the other half keeping it on, allowing for a comparison of viewing patterns [3][4] - Participants who disabled autoplay took longer between episodes, leading to more mindful viewing decisions [4][5] - The study suggests that autoplay may be a form of "dark pattern" design, subtly manipulating user behavior and prioritizing engagement over user well-being [7][10] Group 2: User Experience and Preferences - After experiencing the effects of turning off autoplay, about half of the participants expressed a desire to revert to autoplay for its convenience, while one-third preferred to keep it off for the additional time to reflect on their viewing choices [7][8] - The findings indicate a need for streaming platforms to reconsider how autoplay is integrated, potentially offering more user control over this feature [8][9] Group 3: Ethical and Regulatory Implications - The study raises concerns about the ethical implications of autoplay, especially regarding children's exposure to content that may encourage problematic usage [10][12] - With increasing regulatory scrutiny, there is a growing recognition of the need to protect users from features that may manipulate their behavior [11][12] - The research emphasizes the importance of quantifying online manipulation to enhance consumer protections and ensure that design choices do not have negative societal consequences [13]