Consumer protection

Amazon will pay $2.5 billion to settle FTC accusations of deceptive Prime enrollment practices. The FTC alleged Amazon used manipulative tactics to enroll users and obstructed cancellations. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected customers. Amazon, while agreeing to the settlement, doesn’t admit wrongdoing. The agreement mandates clear Prime program disclosures and a straightforward cancellation process. The case highlights increasing regulatory pressure on big tech, as Amazon also faces a larger antitrust lawsuit from the FTC.

The FTC is suing Amazon, alleging it used “dark patterns” to deceptively enroll consumers in Prime and obstruct cancellations. The FTC claims Amazon violated consumer protection laws by employing misleading interface designs, while Amazon denies these allegations, asserting transparency. A recent ruling found Amazon in violation of the Restore Online Shoppers’ Confidence Act, potentially strengthening the FTC’s case. This trial is a critical test of the FTC’s effort to combat manipulative online designs and could have far-reaching implications for the subscription economy and Big Tech’s business practices.

CNBC AI News reports on new regulations for live-stream shopping released by the General Administration of Market Regulation. The “Measures,” encompassing seven chapters, significantly increase platform operator responsibility, define the duties of hosts and sellers, strengthen government oversight, and outline legal consequences for non-compliance. These rules aim to foster a consumer-friendly environment and regulate the booming e-commerce sector.