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Amazon to Pay $2.5 Billion to Settle FTC Case Over Prime Sign‑Up and Cancellation Tactics

The settlement imposes U.S. site‑design changes following a court finding that Prime falls under consumer‑protection law.

Overview

  • About $1.5 billion will be distributed in refunds to an estimated 35 million Prime customers, and $1 billion will be paid as a civil penalty.
  • Amazon must present a clear option to decline Prime during checkout, disclose subscription terms before charging fees, and simplify cancellations.
  • Cancellation must be no more difficult than sign‑up and available through the same method, with the obligations applying to U.S. operations.
  • The agreement was reached in Seattle shortly before the third day of trial after proceedings began this week.
  • Amazon said the deal does not constitute an admission of wrongdoing and maintained that its managers complied with the law, while the FTC touted one of its largest refund programs.