NEW: Amazon to pay massive price for ‘deceptive' Prime program

Core Points - Amazon has agreed to pay a historic settlement of $2.5 billion to the Federal Trade Commission (FTC) over allegations of misleading customers regarding Prime subscriptions [1][2] - The settlement includes $1.5 billion to be returned to consumers and $1 billion in civil penalties [5][3] - The FTC has established a consent decree that prohibits Amazon from engaging in the deceptive practices identified during the investigation [5][4] Summary by Sections Settlement Details - Amazon's settlement of $2.5 billion is described as a significant victory for consumers, with the FTC emphasizing the need for clear and easy cancellation processes for subscriptions [2][5] - The investigation revealed that Amazon was tricking customers into signing up for Prime and complicating the cancellation process, leading to an estimated loss of $1 billion for consumers [3][4] Regulatory Actions - The FTC has implemented a consent decree that mandates Amazon to provide clear terms for subscription sign-ups and simplify the cancellation process [5][6] - The FTC is actively pursuing litigation against other major companies for similar deceptive practices, indicating a broader regulatory focus on consumer protection [8][11] Future Considerations - The FTC is considering reissuing rules to protect consumers from deceptive subscription schemes, reflecting ongoing efforts to enhance consumer rights [9][10] - The current administration's commitment to consumer protection is highlighted, with the FTC's chairman stating that this issue remains a top priority [11]