Amazon Will Pay $2.5 Billion for Misleading Customers Into Amazon Prime Subscriptions

Amazon has agreed to pay $2.5 billion to settle a lawsuit with the Federal Trade Commission (FTC) over allegations that the company misled customers into signing up for Amazon Prime subscriptions. The FTC claimed that Amazon used deceptive tactics, such as unclear cancel buttons and pre-checked enrollment options, to enroll customers in the Prime membership program without their full consent. This resulted in many customers being charged for the subscription without realizing they had signed up. As part of the settlement, Amazon will refund affected customers and implement new consent procedures to ensure transparent enrollment in the future. The company has also agreed to undergo independent audits to verify its compliance with the settlement terms. The substantial $2.5 billion fine reflects the FTC's efforts to crack down on deceptive business practices that exploit consumers. This case highlights the importance of transparency and informed consent in subscription-based services.