Amazon Agrees to Pay $2.5 Billion to Settle Lawsuit Claiming It 'Tricked' Customers to Join Prime

Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the Federal Trade Commission (FTC). The lawsuit claimed that Amazon "tricked" customers into signing up for its Prime subscription service by making it difficult to cancel or avoid the automatic renewal. The settlement, which is one of the largest consumer protection settlements in US history, resolves the FTC's allegations that Amazon used deceptive practices to boost its Prime membership numbers. The FTC alleged that Amazon made it overly complicated for customers to cancel their Prime subscriptions, leading many to pay for a service they did not want. As part of the settlement, Amazon has agreed to make changes to its Prime enrollment and cancellation processes to ensure they are more transparent and straightforward for customers. The company will also be required to provide clear and conspicuous information about the terms of Prime membership, including the cost and cancellation policies.