Amazon Agrees to $2.5 Billion Settlement Over Prime Subscription Practices
Amazon recently reached a $2.5 billion settlement following a Federal Trade Commission (FTC) lawsuit alleging deceptive practices in its Prime subscription process. The FTC charged that Amazon made it intentionally difficult for customers to unsubscribe and enrolled millions in Prime without their clear consent.
Details of the Settlement
- Amazon will pay a $1 billion civil penalty.
- Additionally, $1.5 billion will be refunded to customers harmed by the deceptive enrollment.
- The company must stop its misleading Prime enrollment and cancellation methods.
FTC's Statement on the Case
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC Chair Lina M. “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets.”
Who May Benefit from the Settlement?
Current and former Amazon Prime members who subscribed within the last six years might be eligible to receive part of the settlement payouts due to these unlawful enrollment and cancellation practices.
Author's summary: This landmark $2.5 billion settlement addresses Amazon’s deceptive Prime subscription tactics, offering refunds and penalties while protecting consumer rights.