Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics

Core Points - Amazon has agreed to a $2.5 billion settlement with the FTC over allegations of deceptive Prime subscription practices [1][2][3] - The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected consumers [1][3] - Amazon is required to implement clearer subscription processes and cancellation methods to prevent future deceptive practices [3][4] Settlement Details - The settlement is one of the largest in FTC history, second only to Facebook's $5 billion settlement in 2019 [4] - Amazon must provide a clear option for customers to decline Prime enrollment and disclose subscription costs, billing dates, and cancellation procedures [3][4] - The company is also mandated to simplify the cancellation process, using the same method as the enrollment process [3] Ongoing Legal Challenges - Amazon is still facing another federal lawsuit from the FTC regarding allegations of anti-competitive practices [5]