Amazon agrees to settle U.S. lawsuit that it 'tricked' people into Prime
Summary
Amazon decided to settle a lawsuit by agreeing to pay $2.5 billion after being accused of tricking people into its Prime membership program. The U.S. Federal Trade Commission (FTC) claimed that Amazon used confusing web designs to get people to sign up and made it hard for them to cancel. Amazon did not admit it did anything wrong but agreed to the settlement as a trial was about to start.Key Facts
- Amazon will pay $1 billion to the government and $1.5 billion to affected customers.
- The FTC accused Amazon of using confusing web designs to enroll users in auto-renewing Prime memberships.
- Prime memberships cost $139 per year or $14.99 per month.
- Regulators said Amazon made the cancellation process difficult on purpose.
- Amazon denied any wrongdoing and said its practices were clear and beneficial to customers.
- A trial was about to start in Seattle, with a jury set to decide if Amazon broke the law.
- Amazon faces another lawsuit accusing it of running a monopoly, expected to go to trial in 2027.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.