Amazon has agreed to pay $2.5 billion to settle a lawsuit with the Federal Trade Commission over claims that it tricked millions of people into signing up for Prime, its paid subscription service, and made cancellation too difficult. The FTC said $1.5 billion will go into a fund to repay eligible subscribers, with the remaining $1 billion as a civil penalty. The settlement requires Amazon to add a "clear and conspicuous" option to decline Prime during checkout and to simplify the cancellation process."Amazo ...

Core Viewpoint - Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations of misleading customers into signing up for Prime membership and complicating the cancellation process [1][5]. Group 1: Settlement Details - The settlement includes $1 billion in civil penalties and $1.5 billion to be refunded to customers who were unintentionally enrolled in Prime or faced difficulties in canceling their subscriptions [2]. - Approximately 35 million Prime customers are eligible for payouts from the $1.5 billion fund, with those who signed up between June 23, 2019, and June 23, 2025, receiving $51 each if they used few Prime benefits [2]. Group 2: Allegations Against Amazon - The FTC accused Amazon of making it intentionally difficult for customers to purchase items without subscribing to Prime, with unclear transaction completion buttons that enrolled customers into Prime [3]. - The cancellation process was described as overly complicated, requiring customers to affirm their desire to unsubscribe on three separate pages, internally referred to as "Iliad" [4]. Group 3: Company Response - Amazon did not admit any wrongdoing but opted for a quick resolution to avoid a lengthy trial, stating confidence in winning the case [5]. - The company emphasized its commitment to transparency in subscription terms and is now prohibited from misrepresenting subscription details, requiring clear disclosure of costs and obtaining express consent from customers [7][8].

Amazon has agreed to pay $2.5 billion to settle a lawsuit alleging it misled customers into paying for Prime subscriptions, the Federal Trade Commission (FTC) announced Thursday. The announcement came days into a trial between the tech giant and the FTC. Under the terms of the settlement, Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds to consumers, and cease any unlawful enrollment and cancellation practices for Prime.The settlement figure is less than 1% of Amazo ...

Core Viewpoint - Rothschild and Company Redburn initiated a sell rating on Oracle with a target price of $175, arguing that the market overestimates the value of Oracle's contracted cloud revenues, suggesting a valuation of approximately $60 billion for Oracle's 5-year cloud revenue guide, indicating a risky scenario priced in by the market [1] Company Analysis - Oracle's stock is currently trading around $300, which reflects a significant premium over the target price set by Rothschild [1] - The stock has experienced a parabolic rise, increasing by 31.5% recently, which has raised concerns about its sustainability given the historical average multiple of 19 compared to the current multiple of 41 [3][10] - Analysts noted that Oracle's earnings report led to a rapid increase in market capitalization, with the stock adding 100 points in a short period, indicating a potential disconnect between stock performance and underlying fundamentals [6][7] Market Context - The discussion around Oracle's valuation is set against a backdrop of heightened volatility in the market, particularly in AI-related stocks, which are perceived to be driving growth but may also be contributing to inflated valuations [4][5] - There are concerns about the potential for a bubble in AI, although some analysts argue that current earnings growth supports the high valuations, contrasting with historical bubbles where earnings growth was absent [13][14] - The market is witnessing a mix of high volatility names that could be poised for downside reversion, with some analysts drawing parallels to past market extremes [19][20]

Core Viewpoint - Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations of deceptive practices related to its Prime subscription service [1][2]. Settlement Details - The settlement includes a $1 billion civil penalty to the FTC and the establishment of a $1.5 billion consumer fund to reimburse 35 million affected customers [2][3]. - Amazon is prohibited from misrepresenting the terms of its Prime service and must obtain explicit consent from consumers before charging for subscriptions [3][4]. Regulatory Context - This settlement is one of the largest penalties imposed by the FTC, comparable to Meta's $5 billion fine in 2019 [5]. - The settlement removes a significant regulatory burden for Amazon and the broader tech industry [5][6]. Financial Impact - The $2.5 billion fine represents approximately 0.1% of Amazon's $2.4 trillion market capitalization [6]. - Following the announcement, Amazon's stock showed slight increases, indicating investor confidence in moving past the legal challenges [5][7]. Subscription Business Implications - The case highlights issues related to auto-enrollment practices, where consumers were charged without explicit permission, and difficulties in cancellation [9]. - The settlement may set a precedent for other companies in the subscription business regarding consumer consent and transparency [6][9].

Amazon.com, Inc. (NASDAQ: AMZN) has agreed to a $2.5 billion settlement over accusations that it misled millions into joining its Prime subscription and then made canceling difficult. AMZN stock is moving. See all the details here. The deal, announced on Thursday, stemmed from a 2023 Federal Trade Commission lawsuit that challenged Amazon's treatment of shoppers and its self-proclaimed role as a consumer-focused company, according to The New York Times.Settlement DetailsThe agreement includes $1 billion in ...

Core Points - Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of deceptive practices related to Prime subscriptions [1][4] - The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected consumers [1][5] - The FTC described the settlement as a significant victory for consumers, aiming to prevent future deceptive subscription practices [4][5] Settlement Details - Amazon will pay up to $51 per customer with a valid claim [2] - The company did not admit any wrongdoing as part of the settlement [4] - The settlement is the second-largest in FTC history [9] Compliance Measures - Amazon must implement clearer language for declining Prime subscriptions and make it easier for customers to cancel their accounts [7][8] - The company is required to undergo third-party audits to ensure compliance with the settlement terms [8] - Two Amazon executives are mandated to refrain from unlawful conduct as part of the settlement [7] Background of the Case - The FTC's investigation into Amazon's practices began during President Trump's administration and led to a lawsuit filed in 2023 [6] - The agency accused Amazon of enrolling customers into Prime memberships without consent and complicating the cancellation process [6]

Core Points - Amazon has agreed to pay $2.5 billion to settle allegations from the Federal Trade Commission (FTC) regarding deceptive practices in enrolling consumers in Amazon Prime and complicating the cancellation process [1][2]. Group 1: Allegations and Legal Proceedings - The FTC's lawsuit claimed that Amazon tricked consumers into signing up for the $139-per-year Prime service during checkout [2]. - The case focuses on two main allegations: enrolling customers without clear consent through confusing checkout processes and creating a complex cancellation system known as "Iliad" [3]. - The FTC alleged that the checkout process forced customers to navigate confusing interfaces, making it difficult to decline Prime membership while making sign-ups more prominent [3][4]. Group 2: Settlement Terms - As part of the settlement, Amazon is required to reform its Prime enrollment and cancellation processes, ensuring clear decline options and simplified cancellation procedures [4]. - Amazon must also implement new disclosure requirements before charging consumers [4]. Group 3: Legal Context - A court ruling indicated that Amazon Prime subscriptions are subject to consumer protection laws, and the company obtained consumers' billing information before fully disclosing subscription terms [5]. - The settlement proposal was made prior to further court testimony, with Amazon neither admitting nor denying wrongdoing [5]. - This case is part of a broader trend of bipartisan lawsuits aimed at regulating the power of U.S. tech giants [6].

Core Viewpoint - Amazon has agreed to a $2.5 billion settlement with the FTC over allegations of deceptive practices related to Prime subscriptions, which includes a $1 billion civil penalty and $1.5 billion in refunds to affected consumers [1][5]. Group 1: Settlement Details - The settlement requires Amazon to pay a $1 billion civil penalty and provide $1.5 billion in refunds to approximately 35 million consumers harmed by its practices [1]. - Amazon must implement a clear option for customers to decline Prime enrollment and disclose subscription costs, billing dates, and cancellation procedures during the sign-up process [2]. - The company is mandated to simplify the cancellation process, allowing consumers to cancel Prime using the same method they used to sign up [2]. Group 2: Allegations and Evidence - The FTC's lawsuit claimed that Amazon employed confusing user interfaces to mislead consumers into enrolling in Prime without their consent and made cancellation difficult [1][3]. - FTC Chairman Andrew N. Ferguson stated that evidence showed Amazon used sophisticated subscription traps to manipulate consumers [3]. Group 3: Historical Context - This settlement is one of the largest in FTC history, following a $5 billion settlement with Facebook (now Meta) in 2019 for privacy violations [5]. - Amazon is still facing another federal lawsuit from the FTC, which accuses the company of stifling competition in the retail market [5].

Amazon has agreed to pay $2.5 billion to settle claims that it enrolled millions in Prime membership subscriptions without their consent and also made it hard for customers to cancel, the Federal Trade Commission announced on Thursday. The settlement includes a $1 billion civil penalty, and a $1.5 billion fund to give refunds back to consumers. Amazon Prime subscribers get access to Prime Video, the tech giant’s subscription streaming service. The FTC said that the $1 billion civil penalty is the largest e ...