Amazon to pay $2.5 billion to settle FTC allegations it duped customers into enrolling in Prime

Core Points - Amazon has reached a $2.5 billion settlement with the Federal Trade Commission regarding deceptive practices related to its Prime memberships [1][2] - The settlement includes $1 billion in civil penalties, the largest fine in FTC history, and $1.5 billion to compensate consumers who were unintentionally enrolled or deterred from canceling their subscriptions [2] - The FTC's lawsuit against Amazon cited violations of the Restore Online Shoppers' Confidence Act, which aims to protect consumers from misleading online charges [3] Company Overview - Amazon Prime offers various benefits such as faster shipping, video streaming, and discounts at Whole Foods for an annual fee of $139 or $14.99 monthly [4] - The Prime membership is a significant and expanding segment of Amazon's business, boasting over 200 million members [5] - In the latest quarterly report, Amazon reported over $12 billion in net revenue from subscription services, reflecting a 12% increase year-over-year [5]