"Amazon on Thursday agreed to pay $2.5 billion to settle Federal Trade Commission (FTC) allegations that it deceived tens of millions of consumers into enrolling in its Prime membership program and then made cancellation difficult. The settlement represents one of the largest in FTC history. The agreement was reached just days into a jury trial that began this week in Seattle, stemming from a lawsuit the FTC filed in 2023, under then-chair Lina Khan."
"Under the settlement terms, Amazon will pay a $1 billion civil penalty to the government and provide $1.5 billion in refunds to approximately 35 million affected customers. Eligible consumers could receive up to $51 each. "Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel," said FTC Chairman Andrew Ferguson."
Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission over allegations that Prime enrollment was deceptive and cancellations were made difficult. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds for about 35 million customers, with eligible consumers able to receive up to $51 each. The case arose during a jury trial in Seattle from a 2023 FTC lawsuit. The FTC accused Amazon of using manipulative "dark patterns" in checkout flows and creating a complex internal cancellation process nicknamed "Iliad." Internal Amazon documents were revealed during the case.
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