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.
572 Articles
572 Articles
Amazon Prime members: You may be entitled to part of this $2.5 billion settlement
Amazon has reached an agreement to pay out $2.5 billion in a lawsuit brought against the company by the Federal Trade Commission. Current and former Amazon Prime members may now be entitled to a part of the settlement.
The Record
Amazon agrees to $2.5B settlement in U.S. — here’s a look at 2 ongoing investigations into the company in Canada
The online retail giant recently agreed to a $2.5-billion settlement in the United States following a Federal Trade Commission investigation.
The Epoch Times
What We Know About Amazon’s $2.5 Billion Settlement
Amazon will pay $2.5 billion in penalties and refunds as part of a settlement against allegations that it enrolled its customers in the Prime service without their consent, federal officials said in a Sept. 25 statement. It means that some Amazon customers who were or are enrolled in Prime will qualify for a payment. Of the $2.5 billion amount, $1.5 billion will go directly to Prime subscribers, which will be capped at $51 per customer. The othe…
FTC alleges Amazon used subscription traps, made Prime cancellation difficult
Amazon is under fire for allegedly tricking people into signing up for their Prime subscriptions, and making it hard for them to cancel. The Federal Trade Commission landed a historic $2.5 billion settlement for the company. FOX 10's Ashlie Rodriguez reports.
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