Amazon Faces $2.5 Billion Settlement Over Prime Subscription Practices
Amazon recently agreed to a $2.5 billion settlement following a lawsuit brought by the Federal Trade Commission (FTC) alleging deceptive subscription practices related to Amazon Prime.
Allegations Against Amazon
The FTC claimed that Amazon enrolled millions of consumers into Prime subscriptions without their consent and intentionally made cancellation difficult.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC Chair Lina M.
She added, “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets.”
Settlement Details
- Amazon will pay a $1 billion civil penalty.
- An additional $1.5 billion will be refunded to customers affected by the deceptive Prime enrollment methods.
- The company must stop their misleading enrollment and cancellation practices for Prime subscriptions.
Who Is Eligible?
Current and former Amazon Prime members who subscribed within the last six years may be eligible to claim part of this settlement.
Summary
This settlement highlights the importance of transparency in subscription services and protects consumers from unfair enrollment tactics in the digital marketplace.