Amazon To Pay $2.5B In FTC Settlement Over Deceptive Prime
Amazon to pay $2.5B in FTC settlement over deceptive Prime tactics, refunding millions of users and facing stricter rules.
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Amazon To Pay $2.5B In FTC Settlement Over Deceptive Prime
Amazon To Pay $2.5B In FTC Settlement Over ‘Deceptive’ Prime Tactics Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics has become one of the biggest regulatory actions against the tech giant. The agreement follows claims that Amazon tricked users into unwanted Prime subscriptions and made it unnecessarily difficult to cancel. Image Credits:Matthias Balk/picture alliance / Getty Images $2.5B Settlement To Refund Millions Of Customers The FTC announced that Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds to nearly 35 million customers. Regulators said these consumers were misled by “deceptive Prime enrollment practices.” Amazon must also stop its unlawful sign-up and cancellation tactics , ensuring customers can easily decline or cancel their Prime membership. How Amazon Allegedly Misled Users The original lawsuit, filed in June 2023 under the Biden administration , accused Amazon of using dark patterns —confusing and manipulative design tricks—to…