FTC secures $2.5 billion settlement with Amazon over Prime practices

Amazon.com Inc. has agreed to pay $2.5 billion and overhaul its popular Prime membership program after federal regulators accused the company of using deceptive tactics to lock millions of consumers into subscriptions and then making it intentionally difficult to cancel.

The Federal Trade Commission (FTC) announced the deal Sept. 25, calling it one of the largest consumer protection settlements in its history. The order requires Amazon to pay a $1 billion civil penalty — the largest ever tied to a violation of an FTC rule — along with $1.5 billion in refunds to an estimated 35 million customers who were charged for unwanted Prime subscriptions or faced obstacles when trying to leave the service.

FTC chair Andrew Ferguson described the outcome as “a monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.” He said Amazon’s enrollment and cancellation flows were designed as “subscription traps,” steering consumers into sign-ups without consent and frustrating efforts to exit.

FTC secures $2.5B Amazon settlement over Prime subscriptions

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