Amazon agrees to pay $2.5B over claims it tricked Prime customers
17 hours ago
- #FTC
- #Consumer Protection
- #Amazon
- Amazon agrees to pay $2.5bn to settle claims it tricked customers into Prime memberships.
- The FTC alleges Amazon made it difficult to cancel Prime subscriptions and used deceptive sign-up practices.
- $1.5bn will go to refunds for affected customers, with eligibility based on usage.
- Amazon denies wrongdoing but agrees to settlement terms, including simplifying cancellation processes.
- The FTC criticizes Amazon's 'subscription traps' and automatic enrollment tactics.
- Amazon must remove misleading buttons and create easier cancellation methods.
- The settlement marks a major FTC victory, yielding the largest civil penalty in its history.
- Critics argue the FTC should reinstate the 'Click-to-Cancel' rule for broader consumer protection.