US EditionAmazon reaches $2.5 billion settlement with FTC over ‘deceptive’ Prime program
- On Thursday, Amazon reached an agreement to pay $2.5 billion to resolve claims brought by the Federal Trade Commission regarding misleading practices surrounding Prime membership sign-ups and difficulties customers faced when trying to cancel.
- The settlement follows a lawsuit filed two years ago in Seattle federal court accusing Amazon of tricking millions into unwanted Prime subscriptions and obstructing cancellation.
- Under the agreement, Amazon must redesign Prime's interface to provide clear cancellation options and disclosures, including an easy method matching customers' signup processes.
- Amazon will pay $1 billion in civil fines—the highest penalty ever imposed by the FTC—and distribute $1.5 billion in restitution to roughly 35 million customers affected by deceptive Prime enrollment and cancellation practices, with some individuals receiving close to $51 each.
- The settlement requires Amazon to cease unlawful enrollment tactics and highlights ongoing regulatory scrutiny of subscription services moving forward.
506 Articles
506 Articles
[NHK] In a lawsuit filed by US regulators alleging that the American IT giant Amazon unfairly forced users to sign up for paid membership services,...
Amazon agreed on Thursday to pay $2.5 billion to resolve the accusations of an American regulator accusing it of misleading practices to enroll consumers in Amazon Prime. The Federal Trade Commission (FTC) lawsuit, filed before a federal court in Seattle, claims Amazon knowingly tricked consumers into registering at the Prime service, at a fee of $139 a year, during the payment process. “Today we have returned billions of dollars into the pocket…
Amazon to pay $2.5B to settle accusations it conned consumers, FTC says
Package-carrying robots await their orders at Amazon’s SNA3 fulfillment center in Otay Mesa. (Photo by Chris Jennewein/Times of San Diego) Amazon has agreed to pay $2.5 billion to settle allegations that the company enrolled millions of shoppers in Prime subscriptions without their consent, and intentionally made it difficult to cancel, the Federal Trade Commission said Thursday. Amazon will be required to pay a $1 billion civil penalty, provide…
Amazon reaches ‘historic’ $2.5B Prime settlement
What happenedAmazon has settled a lawsuit over allegations it tricked customers into signing up for Prime membership and made it too onerous to end their subscriptions, the Federal Trade Commission announced Thursday. Amazon agreed to pay a $1 billion civil penalty and up to $1.5 billion in refunds to an estimated 35 million affected customers.Who said whatAmazon relied on “sophisticated subscription traps designed to manipulate consumers into e…
Amazon reaches $2.5 billion settlement with FTC over 'deceptive' Prime practices: Who is eligible for a payout?
(KRON/NEXSTAR) — Amazon has reached what the Federal Trade Commission (FTC) is calling a “historic” $2.5 billion settlement over allegations that the company used “deceptive methods” to enroll millions of customers in Prime subscriptions. The company had also “knowingly made it difficult” for them to cancel, according to the FTC. “Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again…
Coverage Details
Bias Distribution
- 62% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
