Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
FTC Exposes Amazon's Deceptive Tactics in $2.5 Billion Settlement for Consumers

FTC Exposes Amazon's Deceptive Tactics in $2.5 Billion Settlement for Consumers

Bitget-RWA2025/09/25 17:02
By:Coin World

- FTC secures $2.5B settlement with Amazon over deceptive Prime enrollment and complex cancellation practices, including a record $1B civil penalty and $1.5B in refunds. - Amazon denied wrongdoing but agreed to overhaul subscription workflows, replacing ambiguous buttons with clear options and simplifying cancellation under third-party oversight. - The case affects 35 million consumers enrolled via "Single Page Checkout," with refunds prioritizing those enrolled without consent, marking the FTC's second-la

FTC Exposes Amazon's Deceptive Tactics in $2.5 Billion Settlement for Consumers image 0

The Federal Trade Commission (FTC) has reached a landmark $2.5 billion agreement with

.com, Inc., representing one of the largest fines ever imposed by the agency. This settlement resolves claims that Amazon misled millions of customers into joining Prime memberships without their clear approval and intentionally made the cancellation process difficult. As part of the deal, Amazon will pay a $1 billion civil fine—the highest ever for an FTC rule breach—and provide $1.5 billion in refunds to impacted users. The company is also required to implement changes to how customers sign up for and cancel Prime FTC Secures Historic $2.5 Billion Settlement Against Amazon [ 1 ].

The FTC’s lawsuit, filed in 2023 during Lina Khan’s tenure as chair, alleged Amazon broke the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA) by using “dark patterns” in its interface. The agency said these included misleading prompts such as “No, I don’t want Free Shipping,” which secretly enrolled people in Prime. Internal records showed Amazon executives were aware of the issue, with one describing the subscription process as “a bit of a shady world” and another calling unwanted sign-ups “an unspoken cancer.” The FTC also pointed to Amazon’s “Iliad Flow,” a drawn-out cancellation process that forced users through as many as six screens filled with persuasive messages to deter them from leaving Amazon to pay $2.5 billion to settle FTC allegations it duped… [ 2 ].

Amazon, while agreeing to the settlement, denied any misconduct, asserting it followed industry norms and that most Prime members joined willingly for the service’s perks. The company noted it offers several ways to cancel, including by phone and online. Nevertheless, the FTC argued that Amazon intentionally hid key details like auto-renewal and pricing during sign-up. The settlement compels Amazon to revamp its systems, replacing vague buttons with clear opt-out choices, fully disclosing subscription details, and making cancellation as straightforward as enrollment. An independent monitor will oversee the refund process to ensure compliance Amazon, FTC Agree To $2.5B Settlement In Prime [ 3 ].

The agreement could affect up to 35 million people who may have been signed up between June 2019 and 2025 through Amazon’s “Single Page Checkout.” Refunds will be prioritized for those who were enrolled without permission or who encountered obstacles when trying to cancel. The $1.5 billion in restitution is the FTC’s second-largest payout ever, surpassed only by the $5 billion Facebook privacy settlement in 2019. The deal also holds two senior executives—Neil Lindsay and Jamil Ghani—personally responsible, highlighting the FTC’s emphasis on individual accountability FTC is suing Amazon for making Prime Subscriptions tough to… [ 4 ].

This settlement follows a partial FTC win in August 2025, when a judge found Amazon broke consumer protection laws by collecting payment details before revealing Prime’s terms. The trial, which was expected to last a month, ended after the settlement was reached. While this resolves the Prime subscription dispute, Amazon still faces a separate FTC antitrust case over alleged monopoly practices, scheduled for trial in 2027. The outcome may influence the broader digital marketplace, as it establishes a standard for regulating “dark patterns.” A 2024 report found that 76% of subscription services use similar retention tactics, indicating the case could have wide-reaching effects on consumer protection Why Amazon is on trial for its deceptive ‘Iliad Flow’… [ 5 ].

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Japan’s Declining Yen and U.S. Funding Pressures Trigger Worldwide Liquidity Crunch

- Robert Kiyosaki warns of an impending market crash amid global economic uncertainty, emphasizing Bitcoin as an inflation hedge. - Japan's fiscal stimulus and yen weakness trigger liquidity strains, disrupting global carry trades and accelerating portfolio rebalancing. - U.S. funding strains, including repo market stress and Treasury leverage, threaten dollar liquidity, limiting the Fed's policy flexibility. - Combined pressures depress stocks, crypto, and forex, but Fed intervention could stabilize marke

Bitget-RWA2025/11/29 17:08
Japan’s Declining Yen and U.S. Funding Pressures Trigger Worldwide Liquidity Crunch

Hyperliquid News Today: HYPE Token Set for December Debut Amid Rapid Sector Expansion

- HYPE Token distribution begins ahead of December launch, supported by surging crypto/trading sector growth and strategic partnerships. - Lithuanian energy firm AB Kauno Energija reports 917% profit surge, while Hydreight Technologies achieves 132% revenue growth in Q3 2025. - Blueberry partners with SailGP for global expansion, and Amber International initiates share buybacks to strengthen shareholder value amid market restructuring. - EHang advances pilotless eVTOL operations as firms across energy, cry

Bitget-RWA2025/11/29 17:08
Hyperliquid News Today: HYPE Token Set for December Debut Amid Rapid Sector Expansion

Bitcoin News Update: Stablecoin Growth and Tether Concerns: The Fragile Rebound of Cryptocurrency

- Binance's stablecoin reserves hit $185B as BTC/ETH holdings decline, signaling potential market recovery amid "dry powder" accumulation. - S&P downgrades Tether's USDT to "weak" over 5.6% BTC exposure exceeding 3.9% collateralization margin, raising peg stability risks. - UK expands CARF to 2026 for crypto tax oversight, while Binance delists GMT/ME pairs amid audit-driven compliance measures. - 81% of traders expect Fed rate cuts in December, yet Bitcoin remains bearish below key EMAs, needing $90K+ bre

Bitget-RWA2025/11/29 17:08
Bitcoin News Update: Stablecoin Growth and Tether Concerns: The Fragile Rebound of Cryptocurrency

Webster, NY Receives $9.8 Million FAST NY Grant: Driving Industrial Transformation and Boosting Real Estate Development

- New York's $9.8M FAST NY grant transforms Webster's 300-acre brownfield into a high-tech industrial hub by 2026. - Infrastructure upgrades include road realignment, sewer systems, and electrical planning to create "shovel-ready" industrial space. - Project boosts property values by 10.1% and attracts $650M private investments, creating 250+ jobs in advanced manufacturing. - Statewide, $400M FAST NY program funds 20 sites, aligning with New York's $300M POWER UP energy initiative for industrial resilience

Bitget-RWA2025/11/29 17:08
Webster, NY Receives $9.8 Million FAST NY Grant: Driving Industrial Transformation and Boosting Real Estate Development