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Amazon Agrees to $2.5 Billion FTC Settlement Over Prime Sign-Ups

Regulators said Amazon steered users into Prime using manipulative designs.

Overview

  • Under the deal, $1 billion is a penalty and $1.5 billion will be returned to roughly 35 million U.S. Prime customers.
  • Amazon must present a clear opt-out before enrollment, disclose terms prior to charging, and make cancellation as simple as sign-up in the U.S.
  • The agreement was struck in Seattle shortly before the third day of trial after a judge held Prime falls under U.S. consumer-protection laws.
  • Refund mechanics include automatic payments of up to $51 for low-use subscribers and a claims process for others, with timing subject to court approval.
  • Amazon denies wrongdoing, says the settlement includes no admission of liability, and two company managers are parties to the resolution.