Amazon agrees to pay $2.5bn over claims it tricked Prime customers
Summary
Amazon will pay $2.5 billion to settle claims by the U.S. government that it misled people into signing up for Prime memberships and made it hard to cancel. The settlement involves $1.5 billion designated for refunds to affected customers. The Federal Trade Commission (FTC) accused Amazon of using tactics that violated consumer protection laws.Key Facts
- Amazon has agreed to a $2.5 billion settlement over claims related to Prime memberships.
- The FTC claims Amazon misled customers and made canceling Prime difficult.
- $1.5 billion of the settlement is set aside for refunds to customers.
- The FTC won the largest civil penalty in its history with this agreement.
- Amazon did not admit guilt but agreed to the settlement terms.
- Prime subscriptions include benefits like free shipping and cost $139 a year in the US.
- An estimated 35 million people could be eligible for refunds.
- Amazon will have to change how it presents Prime membership and cancellations.
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