Amazon to pay $2.5 billion to settle FTC lawsuit over Prime subscription; two executives prohibited from…
Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the US Federal Trade Commission, accusing the e-commerce giant of misleading millions of customers into signing up for Prime subscription and intentionally making it difficult to cancel. According to a Bloomberg report, Amazon will pay $1 billion in civil penalties and will refund $1.5 billion to customers to resolve FTC’s allegations. The e-tailer will also simplify its process to cancel the Prime subscription.
The settlement comes three days after the two picked a nine-person jury to decide whether Amazon and the executives were liable. As per the Bloomberg report, the settlement will remain in effect for 10 years.
