Amazon to pay $2.5 bilion fine for duping customers into enrolling in Prime
19 hours ago
- #FTC
- #Prime
- #Amazon
- Amazon settles with FTC for $2.5 billion over Prime membership issues.
- $1 billion in civil penalties, the largest FTC fine in history.
- $1.5 billion to be paid to affected Prime customers.
- Eligible customers include those enrolled via 'Single Page Checkout' from 2019 to 2025.
- FTC accused Amazon of violating the Restore Online Shoppers’ Confidence Act.
- Amazon admitted no wrongdoing in the settlement.
- Prime offers perks like faster shipping, video streaming, and Whole Foods discounts.
- Amazon Prime has over 200 million members, generating $12 billion in net revenue.
- FTC claims Amazon made it difficult to cancel Prime subscriptions.
- Amazon internally referred to the cancellation process as 'Iliad'.
- FTC lawsuit filed under Chair Lina Khan, an antitrust expert.