Technology9/25/2025The Guardian

Amazon to pay $2.5bn to settle FTC lawsuit over Prime ‘subscription traps’

Amazon to pay $2.5bn to settle FTC lawsuit over Prime ‘subscription traps’

Amazon has agreed to pay $2.5 billion to settle a lawsuit with the US Federal Trade Commission (FTC). The FTC accused Amazon of enrolling millions of customers into its Prime subscription service without their consent and making it difficult for them to cancel the service. The settlement includes a $1 billion civil penalty, as well as $1.5 billion to be used as a fund to repay eligible Prime subscribers. The FTC stated that Amazon's practices were deceptive and caused significant harm to consumers. The settlement aims to provide redress to affected customers and prevent similar practices in the future.

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