Overview

• The settlement follows two days of testimony, halting a federal trial that centered on how customers were enrolled in Prime and how they tried to cancel.
• $1.5 billion will be distributed to an estimated 35 million affected customers and $1 billion will be paid as a penalty, according to the FTC.
• Amazon must revamp sign-up and cancellation pathways, provide clear options to decline subscriptions, and disclose terms before charging any fees.
• The FTC alleged Amazon used deceptive interfaces, including an internally nicknamed cancellation process called “Ilias,” to steer people into Prime.
• Amazon said the agreement includes no admission of wrongdoing and framed the move as avoiding lengthy appeals, noting Prime in the U.S. costs $139 per year or $14.99 per month.