Amazon to Pay $2.5 Billion Settlement Over Prime Sign-Up Practices

Amazon has agreed to pay $2.5 billion to settle allegations that it misled millions of consumers into enrolling in its Prime membership program.

US regulators accused the company of using manipulative designs and confusing interfaces — sometimes called “dark patterns” — to make it difficult for customers to avoid or cancel subscriptions. The settlement, one of the largest of its kind, comes after years of scrutiny into Amazon’s marketing practices.

While the company did not admit wrongdoing, it said the agreement would help put the matter behind it and allow it to continue focusing on customer satisfaction. Prime remains one of Amazon’s most lucrative services, offering free shipping, streaming, and other benefits to more than 200 million members worldwide.

Consumer advocates say the settlement sends a strong signal to tech companies that deceptive subscription tactics will not be tolerated. Regulators added that the payout reflects the scale of the alleged harm caused to customers.