Overview
- Amazon will fund a $1.5 billion consumer relief program and pay $1 billion in penalties after the FTC alleged deceptive Prime sign-ups and obstructive cancellations.
- About 35 million Prime subscribers qualify for payments from the relief fund, according to the FTC.
- Payouts will roll out in two phases, with some automatic deposits within 90 days and a subsequent claims process for others who struggled to cancel or faced misleading sign-ups.
- Settlement terms require a clearly visible opt-out button, simpler cancellation, and prominent disclosures on price and auto-renewal.
- Amazon did not admit wrongdoing; an independent monitor will oversee compliance and the distribution of consumer redress, and the case spotlighted so-called dark patterns including an internal system dubbed “Ilíada.”