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

Legal & Regulatory - Amazon reached a $25 billion settlement with the FTC over Prime memberships [1] - The lawsuit was filed in 2023 under the Biden administration [1] - Amazon did not admit any wrongdoing as part of the settlement [2] Financial Implications - The agreement includes $1 billion in penalties and $15 billion in payouts to customers [2] - Each qualifying customer will receive roughly $51 [2] Operational Changes - Amazon must provide clear disclosures about enrollment [2] - Amazon must get express consent before charging for a subscription [2] - Amazon must provide an easier way to cancel subscriptions [2]