Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics

Amazon has agreed to pay a $2.5 billion settlement with the Federal Trade Commission (FTC) over its alleged "deceptive" tactics in enrolling customers into its Prime subscription service. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to an estimated 35 million affected consumers. The FTC accused Amazon of using "dark patterns" and other tactics to mislead customers into signing up for Prime memberships, often making it difficult for them to cancel or avoid unwanted charges. The settlement requires Amazon to implement new procedures to ensure transparency and consent in its Prime enrollment process. While the settlement is a significant financial penalty, it allows Amazon to avoid further legal battles and potential larger fines. The case highlights the ongoing scrutiny of tech companies' business practices, particularly around consumer protection and data privacy issues.