Amazon to pay billions to Prime customers after allegedly ‘tricking’ them

Amazon, the online retail giant, has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that the company manipulated customers into signing up for Prime subscriptions. The FTC accused Amazon of using deceptive tactics, such as making it too easy for customers to inadvertently sign up for Prime during the checkout process and making it difficult for them to cancel their subscriptions. As part of the settlement, Amazon will pay $1.5 billion to Prime customers who were allegedly misled, while the remaining $1 billion will go to the U.S. government. To address the FTC's concerns, Amazon has agreed to make changes to its Prime subscription process, including providing customers with clearer information about subscription terms and making the cancellation process more straightforward. These changes are aimed at reducing ambiguity and ensuring that customers are fully informed when they sign up for or cancel their Prime memberships.