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.
451 Articles
451 Articles
Amazon to refund some Prime members $51 in $2.5 billion FTC settlement
Amazon agreed to pay a record $2.5 billion to settle its lawsuit with the Federal Trade Commission (FTC), which alleged the tech giant enrolled users in Prime without their consent and made cancellation difficult. The settlement includes $1 billion in civil penalties and $1.5 billion in customer refunds. Amazon must also stop these "deceptive" practices, the FTC announced. “The evidence showed that Amazon used sophisticated subscription traps de…
Amazon to pay $2.5 Billion to settle FTC case over Prime enrollment practices
Amazon has agreed to pay $2.5 billion to settle a Federal Trade Commission lawsuit accusing the company of misleading customers into enrolling in Prime and making the cancellation process overly burdensome. Under the settlement, announced Thursday, the company will pay $1 billion in civil penalties — the largest fine ever imposed by the FTC — and $1.5 billion in refunds to consumers. Those eligible for compensation include people who were signed…
Amazon to pay $2.5 billion to settle claims it tricked Prime customers - West Hawaii Today
SEATTLE — Amazon agreed to pay up to $2.5 billion to settle claims that it tricked tens of millions of people into signing up for its Prime membership program, then made it hard for customers to cancel when they wanted out.
Amazon to pay $2.5 billion to settle claims it tricked Prime customers - Hawaii Tribune-Herald
SEATTLE — Amazon agreed to pay up to $2.5 billion to settle claims that it tricked tens of millions of people into signing up for its Prime membership program, then made it hard for customers to cancel when they wanted out.
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