CX Ethics in the Spotlight: Amazon’s $2.5B Dark Patterns Settlement with the FTC

It’s been a bit since I've written here. I’ve been keeping busy with some publishing projects, one of which I’m especially excited about: The Sage Works Guide to Global Leadership, coming out in January!

Lately, though, the mainstream conversation around CX ethics has caught up with some of the same issues I’ve been working on. Case in point: the FTC’s recent $2.5 billion settlement with Amazon over “dark patterns” in its Prime subscription flows. Just how tough was it to cancel? Well, the complaint specifies a "four-page, six-click, fifteen-option cancellation process." Wow!

Dark patterns are intentional design choices that create friction, conceal important information from customers, and drive outcomes like revenue or retention for a company, often at the expense of the customer's money, time, or privacy. For years, dark patterns have quietly shaped customer experiences—not as bugs, but as features. They're so common that nowadays, it's not about who's experienced them, but who hasn't?

If you’ve followed my past work on sludge and red tape, you’ll see the connections:

• Dark patterns: deceptive design tactics that push customers into unintended actions—like impulse buying, forced cookie acceptance, fake urgency, hidden fees, or manipulative interface tricks.

• Sludge: excessive friction that slows or discourages customers from doing what they already intend, often because of poor choice architecture, processes, exclusion, or communication breakdowns.

• Red tape: bureaucratic barriers—policy-driven rules that create hassle, complexity, and delay. Sometimes justified, often not.

Dark patterns aren’t accidental—they’re engineered. Think of manipulative FOMO banners (“Hurry! Only 2 left in stock!” when more inventory exists), shaming (think of pop-ups that say something like, "I don't want to save money."), or subscription terms buried in fine print.

The Amazon Case

Last week's FTC announcement hailed a $2.5 billion settlement with Amazon over deceptive Prime sign-ups and obstructive cancellation flows. The 2023 lawsuit accused Amazon of violating the Restore Online Shoppers’ Confidence Act (ROSCA), which requires clear disclosure of material terms before collecting billing information. One government official told the Associated Press that Amazon knew it would lose in court, leading to a settlement.

Who Else?

Amazon isn’t alone in the dark patterns spotlight. There was SiriusXM’s settlement in New York, which I blogged about last year. There is also the EU’s Digital Services Act (2024) banning dark patterns outright, and now the FTC’s landmark case. Plus a newer class action lawsuit against Adobe, alleging deceptive subscription renewal costs and hard-to-cancel processes.

The Research on Dark Patterns

Some eye-opening research shows how deeply dark patterns can go on e-commerce platforms. One study analyzed 53,000 product pages across 11,000 shopping websites and uncovered 1,818 dark pattern instances on 183 sites. Researchers also identified 22 third-party vendors that sell turnkey toolkits that enable sites to implement dark patterns. Two of the 22 openly marketed deceptive practices.

Across 53,000 product pages on 11,000 shopping websites, researchers found 1,818 dark pattern instances on 183 sites, plus 22 third-party vendors that sell turnkey toolkits for enabling dark patterns on websites.

This isn’t just a digital phenomenon. Casinos have long used disorienting layouts, lighting, and nudges to guide players toward high-margin games. The principle is the same: design that manipulates. This raises the question: If friction becomes a trap, is it a customer experience, or is it customer exploitation? You could say it's both.

What CX Leaders Can Do Now

Reframe the Narrative

Stop sugarcoating “friction.” Call manipulation what it is. Train cross-functional teams on the ethical boundaries of persuasive design.

Evolve CX Governance

Audit high-impact flows such as sign-ups, cancellations, and billing for clarity and compliance. Exits should be as elegant as entries: one-click sign-up, and one-click to cancel. One recent piece of research suggests an audit framework based on the concept of sludge. Expand KPIs beyond conversion to include clarity, consent, and confidence.

Upgrade VoC Programs

Add friction feedback: “Was anything confusing, misleading, or hard to cancel?” Test with real users. If they feel tricked, you’ve failed. Build closed-loop processes to remediate flagged experiences.

Closing Thought

The message from regulators is becoming clearer: the era of unchecked manipulation is waning. CX leaders now have an opportunity: defend the status quo or redefine it based on the ideal of customer respect. Trust over tricks will keep you ahead of regulation and win something more durable than short-term conversions: customer trust and confidence.

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