"Amazon has agreed to pay $2.5 billion to settle a lawsuit from the Federal Trade Commission (FTC) over allegations that it duped users into paying for Prime subscriptions and made it hard to cancel memberships. The company will be required to pay a $1 billion civil penalty and provide $1.5 billion in refunds to an estimated 35 million consumers harmed by the company's "deceptive Prime enrollment practices," the FTC says. Amazon is also required to stop its "unlawful enrollment and cancellation practices.""
"As part of the settlement, Amazon is required to include a clear button for customers to decline signing up for Prime. This means that the company can no longer have a button that says "No, I don't want free shipping." Amazon must also clearly disclose the subscription cost during the enrollment process, along with the billing date and frequency, whether the subscription auto-renews, and the procedure for cancellation."
Amazon agreed to pay $2.5 billion to resolve an FTC lawsuit alleging deceptive Prime enrollment and difficult cancellation practices. The payment includes a $1 billion civil penalty and $1.5 billion in refunds to about 35 million consumers. The FTC alleged that Amazon used confusing user interfaces to enroll people in Prime without their knowledge and imposed unnecessary steps to cancel memberships. The settlement requires Amazon to stop unlawful enrollment and cancellation practices, add a clear decline button, disclose subscription cost, billing date and frequency, auto-renewal status, and cancellation procedures, and allow cancellations using the same method used to sign up.
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