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.
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Westside CurrentAmazon to Pay $2.5B to Settle Accusations it Conned Consumers, FTC Says
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 announced Thursday. Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds back to roughly 35 million customers harmed by the deceptive Prime enrollment practices — up to $51 each to e…
Amazon agreed to pay $2.5 billion to resolve a lawsuit filed by the Federal Trade Commission (FTC) accusing the company of tricking millions of users into signing up to Amazon Prime and making it difficult for them to cancel. Of this amount, $1.5 billion will be allocated to subscribers affected by “undesired registrations.” Key points of the agreement between Amazon and the FTC The agreement provides for a civil sanction of $2.5 billion, consis…
Amazon has agreed to pay the US Federal Trade Commission (FTC) the largest retail fine in history, $2.5 billion, to end a two-year dispute over allegations that it tricked consumers into signing up for its Prime service and then made it difficult for them to cancel.
They used sophisticated means to trick customers into subscribing to the Prime service.
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