‘Sophisticated subscription traps’: Amazon to pay $2.5 bn settlement for ‘tricking customers’ into signing up for Prime
Amazon has agreed to a record $2.5 billion settlement with the US Federal Trade Commission (FTC). With this settlement, Jeff Bezos‘ Amazon resolved a two-year legal battle over claims that it tricked customers into signing up for its Prime subscription and made cancellations deliberately difficult.
The settlement, announced Thursday, includes a $1 billion civil penalty and $1.5 billion in refunds to about 35 million consumers who were allegedly harmed by Amazon’s “deceptive Prime enrollment practices”.
