Amazon Settles for $2.5 Billion Over Prime "Dark Patterns"


 – What Consumers Need to Know

Bottom Line

Amazon agreed to pay a record-breaking $2.5 billion settlement to resolve allegations it tricked millions of customers into Prime subscriptions using deceptive "dark patterns" and made cancellation deliberately difficult. About 35 million consumers may be eligible for refunds up to $51 each.

What Happened

Amazon reached a historic settlement with the Federal Trade Commission on September 25, 2025, just days into a jury trial in Seattle. The settlement resolves allegations that the e-commerce giant deliberately misled consumers into signing up for its $139-per-year Prime membership program and then erected barriers to prevent cancellation.

The Core Problem: "Dark Patterns"

The FTC accused Amazon of using sophisticated psychological manipulation techniques called "dark patterns" – deliberately deceptive user interface designs that trick consumers into making unwanted purchases or revealing personal information. These techniques exploit cognitive biases and can be particularly effective against vulnerable populations.

Specific tactics Amazon allegedly used included:

  • Prominent orange buttons labeled "Get FREE Same-Day Delivery" that automatically enrolled customers in Prime
  • Forcing customers who declined Prime to click a small, inconspicuous text link reading "No thanks, I do not want FREE delivery"
  • Creating a complex, multi-step cancellation process nicknamed "the Iliad Flow" by FTC investigators
  • Interrupting the normal checkout process to redirect customers to Prime enrollment pages

Internal Evidence

Documents revealed during the case showed Amazon executives were aware of these problematic practices. Internal communications included employees describing unwanted subscriptions as "an unspoken cancer" and calling "subscription driving" a "bit of a shady world."

Settlement Details

Financial Impact

  • $1 billion civil penalty – the largest in FTC history for this type of violation
  • $1.5 billion in consumer refunds – the second-highest restitution award ever obtained by FTC action
  • Total settlement represents less than 1% of Amazon's 2024 revenue

Consumer Eligibility

Approximately 35 million consumers may qualify for refunds. To be eligible, customers must have:

  • Signed up for Prime between June 23, 2019, and June 23, 2025
  • Used Amazon's "Single Page Checkout" or similar enrollment methods
  • Made minimal use of Prime benefits after enrollment

Eligible consumers will receive up to $51 automatically. Others can submit claims if they believe they were enrolled without consent or had difficulty canceling.

Required Changes

Amazon must implement several consumer protection measures:

  • Clear decline options: Replace misleading buttons with straightforward language
  • Transparent disclosures: Clearly explain Prime costs, auto-renewal, and cancellation procedures during enrollment
  • Simplified cancellation: Make canceling as easy as signing up
  • Third-party monitoring: Pay for independent oversight of compliance

The settlement expires after 10 years, and two Amazon executives must personally comply with the terms for three years.

Research Context: The Dark Patterns Problem

Growing Prevalence

Recent studies reveal dark patterns are becoming increasingly common across digital platforms:

  • 76% of subscription websites use at least one dark pattern, according to a 2024 international review by consumer protection agencies
  • 95% of free Android apps employ manipulative design techniques
  • Dark patterns disproportionately affect lower-income and less-educated consumers, though recent research suggests vulnerability spans all demographic groups

Scientific Evidence

Academic research consistently demonstrates the effectiveness of these techniques:

  • Studies show dark patterns successfully manipulate consumer behavior even when people are explicitly warned about them
  • Research indicates that added "friction" (like payment confirmation pages) can reduce but not eliminate dark pattern effectiveness
  • Consumer protection experts argue that self-help measures are insufficient to address the problem

Regulatory Response

The Amazon settlement reflects a broader global crackdown on dark patterns:

  • The EU's Digital Services Act prohibits dark patterns across all consumer groups
  • Multiple U.S. states are considering legislation targeting manipulative design
  • The FTC has identified dark patterns as a priority enforcement area under Chairman Andrew Ferguson

Consumer Recommendations

Immediate Actions

  1. Check your subscriptions: Review all recurring charges for services you may not remember enrolling in
  2. Watch for refund notifications: Amazon will contact eligible customers within 90 days
  3. Document cancellation attempts: Keep records if you experience difficulty canceling any subscription service

Shopping Best Practices

  • Read all prompts carefully during online checkout
  • Look for pre-checked boxes or confusing language
  • Verify subscription terms before completing purchases
  • Test cancellation processes soon after enrolling in trial offers

Red Flags to Watch For

  • Buttons that use guilt or shame to pressure decisions
  • Confusing language that obscures the true nature of offers
  • Multi-step cancellation processes that seem unnecessarily complex
  • "Limited time" offers that aren't actually time-sensitive

Industry Impact

Amazon's Position

Amazon spokesperson Mark Blafkin stated the company "has always followed the law" and emphasized that Amazon works to make enrollment and cancellation "clear and simple." The company noted many of the required changes were already implemented years ago.

Broader Implications

For consumers: The settlement sets a precedent that could lead to stronger enforcement against deceptive subscription practices across industries.

For businesses: Companies using similar tactics may face increased scrutiny and should review their subscription and cancellation processes.

For regulators: The record settlement demonstrates the FTC's commitment to aggressive enforcement under the Trump administration, despite expectations of a more business-friendly approach.

Policy Perspective

The Amazon case represents a rare bipartisan success in consumer protection. While some critics argue the settlement is insufficient – Senator Elizabeth Warren called it "a slap on the wrist" – consumer advocates view it as an important step toward accountability for tech giants.

Former FTC Commissioner Bill Kovacic noted the settlement reflects the agency's "serious commitment to challenge serious fraud, especially the fraudulent conduct of big tech companies."

The case also highlights the challenge of regulating in the digital economy, where traditional consumer protection frameworks struggle to address sophisticated psychological manipulation techniques.

What's Next

For Affected Consumers

  • Amazon will begin issuing automatic refunds within 90 days
  • Additional claims can be submitted through a process Amazon must establish
  • The company must maintain simplified cancellation procedures for the next decade

For the Industry

  • Other tech companies may face similar scrutiny of their subscription practices
  • The FTC has indicated plans for continued enforcement against dark patterns
  • State and federal legislators may introduce additional consumer protection measures

Long-term Outlook

The settlement may signal a shift toward more aggressive consumer protection enforcement, even under a Republican-led FTC. Chairman Ferguson's comments suggest the agency will continue prioritizing cases that protect consumers from "sophisticated subscription traps."

The Amazon case also demonstrates how academic research on behavioral economics and consumer psychology is increasingly influencing regulatory enforcement and legal standards.

Sources

  1. Weise, K. & Kang, C. (2025, September 26). Some customers tricked into signing up, claim alleged. The New York Times.
  2. Federal Trade Commission. (2025, September 25). FTC Secures Historic $2.5 Billion Settlement Against Amazon. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon
  3. Federal Trade Commission. (2023, June 21). FTC Takes Action Against Amazon for Enrolling Consumers in Amazon Prime Without Consent and Sabotaging Their Attempts to Cancel. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2023/06/ftc-takes-action-against-amazon-enrolling-consumers-amazon-prime-without-consent-sabotaging-their
  4. Luguri, J. & Strahilevitz, L. (2021). Shining a Light on Dark Patterns. Journal of Legal Analysis, 13(1), 43-109.
  5. Kugler, M.B., Strahilevitz, L., Chetty, M., & Mahapatra, C. (2025). Can Consumers Protect Themselves Against Privacy Dark Patterns? University of Chicago Law School Research Paper. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5084827
  6. Federal Trade Commission. (2022, September 15). FTC Report Shows Rise in Sophisticated Dark Patterns Designed to Trick and Trap Consumers. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-report-shows-rise-sophisticated-dark-patterns-designed-trick-trap-consumers
  7. Zac, A., Huang, Y., von Moltke, A., Decker, C., & Ezrachi, A. (2025). Dark patterns and consumer vulnerability. Behavioural Public Policy, 1-28. doi:10.1017/bpp.2024.54
  8. Federal Trade Commission. (2024, July 10). FTC, ICPEN, GPEN Announce Results of Review of Use of Dark Patterns Affecting Subscription Services, Privacy. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2024/07/ftc-icpen-gpen-announce-results-review-use-dark-patterns-affecting-subscription-services-privacy
  9. Congressional Research Service. (2024). What Hides in the Shadows: Deceptive Design of Dark Patterns. Retrieved from https://www.congress.gov/crs-product/IF12246
  10. Ballard Spahr LLP. (2024, May 28). The Iliad Flows: Federal Judge Allows FTC "Dark Patterns" Suit Against Amazon to Proceed. Retrieved from https://www.ballardspahr.com/insights/alerts-and-articles/2024/05/federal-judge-allows-ftc-dark-patterns-suit-against-amazon-to-proceed
  11. Kim, K., Kim, W.G., & Lee, M. (2023). Impact of dark patterns on consumers' perceived fairness and attitude: Moderating effects of types of dark patterns, social proof, and moral identity. Tourism Management, 97, 104456.
  12. University of Chicago Law School. (2025, June 11). Dark Patterns: Can Consumers Break Out? Retrieved from https://www.law.uchicago.edu/news/dark-patterns-can-consumers-break-out

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