Amazon Members May Be Entitled to Part of Historic $2.5B Settlement
Amazon recently agreed to pay $2.5 billion in a landmark lawsuit after the Federal Trade Commission (FTC) accused the company of making it excessively difficult for consumers to unsubscribe from Amazon Prime.
Lawsuit Allegations
The lawsuit claims that Amazon enrolled millions in Prime subscriptions without their consent and deliberately complicated the cancellation process.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC Chair Lina M.
She added that these manipulative tactics harm both consumers and honest businesses, and the FTC is committed to protecting Americans from “dark patterns” and other unfair practices online.
Settlement Details
- Amazon must pay a $1 billion civil penalty.
- It will provide $1.5 billion in refunds to customers affected by deceptive Prime enrollment practices.
- The company is required to stop these deceptive enrollment and cancellation methods.
Who May Benefit?
Current and former Amazon Prime members who subscribed within the last six years might be eligible for a share of the settlement.
Author's summary: Amazon will pay $2.5 billion over deceptive Prime subscription practices, offering refunds and penalties to protect consumers from unfair enrollment tactics.