""On March 14, 2022, Business Insider published information leaked from current and former Amazon employees regarding the problems with Amazon's Prime checkout enrollment flow and the Iliad Flow," the FTC wrote in a previous filing. "The Commission quickly ascertained that Amazon had failed to disclose much of the now-leaked documents and information to the Commission, despite the fact that at least some of it was responsive to the outstanding CID. Amazon withheld the information.""
"That report, based on internal Amazon documents, showed that the company had known since at least 2017 that its website design misled customers into joining Prime, the membership program that offers perks such as free delivery and video streaming. Despite years of complaints, Amazon took little meaningful action, and in some cases, abandoned proposed fixes after internal tests showed slower subscription growth, according to Business Insider's investigation."
Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission to resolve claims about deceptive Prime subscription sign-up and cancellation practices. The settlement arose after a 2022 Business Insider investigation using internal Amazon documents and revealed that Amazon had known since at least 2017 that its website design misled customers into joining Prime. Internal tests sometimes blocked fixes that would slow subscription growth, and Amazon withheld documents responsive to the FTC’s investigatory demands. The settlement includes a $1 billion penalty, $1.5 billion in consumer refunds, bans on continuing unlawful practices by Amazon and two executives, and required changes to Prime enrollment and cancellation flows.
Read at Business Insider
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