Amazon Will Pay Up $2.5 Billion in Settlement Over Allegedly Tricking People Into Prime Subscriptions

Amazon has agreed to pay a $2.5 billion settlement over allegations that it tricked customers into enrolling in Prime subscriptions. The settlement includes a $1 billion civil penalty, the largest ever imposed by the Federal Trade Commission (FTC) for a rule violation case, and $1.5 billion in refunds to customers. The FTC accused Amazon of using deceptive tactics to enroll customers in Prime memberships, such as making it difficult to cancel subscriptions and making it appear that customers had already agreed to a paid membership. The settlement requires Amazon to obtain affirmative consent from customers before enrolling them in any paid subscription program. The settlement is part of the FTC's ongoing efforts to protect consumers from unfair and deceptive business practices. The record-breaking penalty and refund program underscore the agency's commitment to holding companies accountable for their actions and ensuring that consumers are not taken advantage of.