Amazon might owe you money: $1.5 billion payout for Prime members follows FTC settlement. Here's what to know

"Amazon reached a $2.5 billion settlement with the Federal Trade Commission (FTC) on Thursday over whether the e-commerce giant used "deceptive methods" to sign up consumers for Prime subscriptions, then made it "exceedingly difficult" to cancel. The agency argued Amazon enrolled millions of customers in Prime subscriptions without their consent, and knowingly made it difficult for consumers to get out of the agreement."

"That settlement, which comes just three days into the civil trial in federal court in Seattle, included a whopping $1 billion civil penalty, the highest in history, and a $1.5 billion fund to refund Prime users harmed by the deceptive enrollment practices.The e-commerce giant must also create an easier way for users to cancel, which includes modifying its interface, and "cease unlawful enrollment and cancellation practices.""

"The FTC case charged Amazon and several company executives with knowingly misleading millions of consumers into enrolling in Prime, violating the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). Documents in the lead-up to trial were cited to show Amazon executives and employees "knowingly discussed these unlawful enrollment and cancellation issues"-making comments such as, "subscription driving is a bit of a shady world," and stating that leading consumers to unwanted subscriptions is "an unspoken cancer.""

A $2.5 billion settlement requires Amazon to pay a $1 billion civil penalty and fund $1.5 billion to refund Prime users allegedly harmed by deceptive enrollment practices. The settlement follows FTC allegations that Amazon enrolled millions in Prime without consent and made cancellation exceedingly difficult. The company must modify its interface to make cancellation easier and cease the challenged enrollment and cancellation practices. FTC filings cited internal discussions by Amazon personnel acknowledging problematic subscription tactics. Amazon did not admit or deny the allegations and stated it strives to make signing up and canceling Prime clear and simple.

Read at Fast Company