Amazon Will Pay $2.5 Billion to Settle FTC Suit That Alleged 'Dark Patterns' in Prime Sign-Ups

"In the six-year time frame established in the settlement, anyone who "unsuccessfully attempted" to cancel their Prime subscription online is eligible to get paid up to $51 from Amazon. People who signed up for Prime during that same period can also get up to $51 if they signed up through a "challenged enrollment flow"-a page with a confusing interface that may lead to people inadvertently making a purchase."

"An FTC spokesperson tells WIRED that automatic payments will go out to some customers within 90 days. "The rest of eligible consumers will receive a notification from Amazon, and will have the opportunity to submit a simple claim form," the FTC says. "Amazon is required to post information about this to Amazon.com and the app. The settlement also requires Amazon to have an independent third party who will monitor their compliance with these claims.""

"The court filing says that Amazon is also "permanently" barred from structuring Prime sign-ups with a confusing "negative option feature" where a customer is assumed to be making a purchase unless they actively refuse it. For example, the filing says, a button that reads "No thanks, I don't want free shipping" does not clearly indicate that a customer will be signed up for Prime unless they click it."

The settlement covers a six-year period and provides up to $51 to customers who unsuccessfully attempted to cancel Prime online. Customers who enrolled through a challenged enrollment flow during the same period can also receive up to $51. Court filings showed that some users selected two-day shipping and unknowingly enrolled in Prime. The FTC says some customers will receive automatic payments within 90 days. Remaining eligible consumers will be notified by Amazon and may submit a simple claim form. Amazon must post information on Amazon.com and the app and engage an independent third party to monitor claims compliance. The settlement permanently bars confusing negative-option sign-ups and requires clear UI language such as "Join Prime" and "renew" to indicate enrollment and auto-renewals.

Read at WIRED