Amazon Faces $2.5 Billion Settlement Over Prime Subscription Practices
If you've ever felt misled into subscribing to Amazon Prime or struggled to cancel, you're not alone. The Federal Trade Commission (FTC) agrees that the process has been confusing and difficult.
In 2023, the FTC filed a lawsuit against Amazon, resulting in a historic $2.5 billion settlement. Of this amount, $1.5 billion will be used to repay eligible subscribers, while the remaining $1 billion serves as a civil penalty.
Settlement Terms and Amazon’s Response
Amazon has not admitted any wrongdoing but must implement changes to its subscription process. The settlement requires a “clear and conspicuous” option to decline Prime during checkout and a simplified cancellation process.
"Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers," said Mark Blafkin, Amazon senior manager.
"We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world."
FTC’s Allegations
The FTC accused Amazon of using “dark patterns” to push customers into Prime subscriptions and then making it excessively difficult to cancel those subscriptions.
Consumers who believe they are owed a portion of the settlement should check eligibility details to ensure they receive their repayment.
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Summary: Amazon's $2.5 billion settlement resolves FTC claims that it tricked users into Prime subscriptions and complicated cancellations, forcing the company to improve transparency and ease of use.
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