Amazon reaches $2.5 billion settlement with FTC over ‘deceptive’ Prime program
The Amazon Prime logo exhibited on June 21, 2023 next to an Amazon distribution truck in California, California.
Justin Sullivan | Getty Images
Amazon The Federal Trade Commission will pay $ 2.5 billion to solve the claims that users persuade to pay for the main memberships.
The case, which was filed by the FTC under the Biden administration in June 2023, claimed that Amazon has taken tens of millions of customers in the main subscription program and sabotaged their attempts to cancel.
Surprise settlement comes to the hearing at the Seattle Federal Court of Amazon and FTC because it only stays for three days. The opening arguments took place on Tuesday.
FTC, the agreement forbids Amazon’s prime conditions misconduct, the company required to make clear and prominent explanations about the conditions of the program during the registration, and Amazon required consumers to receive open consent before paying for a subscription. The agency added that Amazon should provide an easy way for users to cancel their subscriptions.
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