Today’s historic enforcement against Amazon follows direct action led by the Transatlantic Consumer Dialogue’s (TACD) and its members, who launched coordinated actions on both sides of the Atlantic in 2021, which first brought Amazon’s use of manipulative ‘dark patterns’ to the attention of regulators.
In January 2021, the Norwegian Consumer Council (NCC), joined by 16 consumer organizations across Europe and the US, brought these practices to light in a widely-cited report and legal complaint, urging authorities to hold Amazon accountable.
Today’s announcement of a $2.5 billion settlement by the U.S. Federal Trade Commission (FTC) against Amazon marks historic progress for digital consumer protection worldwide. Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds back to consumers harmed by their deceptive Prime enrollment practices, and cease unlawful enrollment and cancellation practices for Prime.
Finn Myrstad, Digital Committee Co-chair and Director of Digital Policy at the Norwegian Consumer Council, stated:
“Historic progress! In January 2021, we clearly documented how difficult Amazon made it for customers to leave Prime, and filed a complaint alongside 16 consumer groups in Europe and the US. Today’s FTC settlement is a direct result of dedicated advocacy and collaborative civil society action. But let’s be clear: Amazon profited immensely from manipulative design. This win demonstrates that working together, we can force even the biggest tech companies to change.”
Calli Schroeder, Digital Committee Co-chair and Privacy Counsel at EPIC, added:
“Amazon’s tactics are a textbook case of dark patterns: a manipulative strategy designed to undermine user autonomy and choice. The FTC’s historic settlement sends a strong message to digital giants: consumer rights are non-negotiable, and dark patterns will not be tolerated on either side of the Atlantic. Going forward, companies must ensure their platforms empower users and make leaving a service as easy as signing up. Regulators now need to codify strong bans on dark patterns in law.”
More on the results of this action
This FTC action builds on achievements in Europe, where the network of Consumer Protection Authorities (CPC), after negotiations between EU authorities and Amazon, secured commitments that Prime cancellation must become as simple as enrollment.
Every year consumers on both sides of the Atlantic fall prey to similar practices, losing money and giving away more personal data than they intend. Now this needs to be codified into law in the upcoming digital fairness act in the EU, and through rulemaking in the FTC.
This marks a significant victory for transatlantic consumers in our long-standing effort to hold tech companies accountable.
About TACD
The Transatlantic Consumer Dialogue (TACD) unites 70+ leading consumer organizations from the European Union and United States to promote consumer interests in digital policy, trade, and other key areas.