The Federal Trade Commission (FTC) accused Amazon of adding customers to Prime subscriptions without consent. As a result, the company agreed to a $2.5 billion settlement, addressing allegations that it misled millions into joining the paid service.
“Knowingly misleading millions of consumers into enrolling in Prime.”
The FTC also stated that Amazon made the cancellation process unnecessarily complicated for users. While accepting the settlement, Amazon did not admit any wrongdoing.
Under the agreement, $1.5 billion will be distributed to an estimated 35 million affected Prime members, while the remaining $1 billion serves as a civil penalty. The FTC noted that this is the largest penalty ever imposed in a rule violation case of this kind.
Millions of Amazon Prime users may receive part of a historic $1.5 billion payout after the FTC settlement over unauthorized enrollments and cancellation barriers.