Amazon has agreed to a landmark USD 2.5 billion settlement with the Federal Trade Commission (FTC), which accused the company of misleading customers into enrolling in its Prime membership and making it difficult to cancel. As part of the settlement, Amazon will pay USD 1 billion in civil penalties—the largest ever imposed by the FTC for a rule violation—and USD 1.5 billion will go to consumers who were unknowingly signed up for Prime or faced obstacles when trying to cancel. The lawsuit, originally filed two years ago, led to a trial that began this week in Seattle. While Amazon has agreed to the settlement, the company has not admitted to any wrongdoing. It also did not provide an immediate response to inquiries from The Associated Press regarding the case. The settlement marks a significant moment in consumer protection efforts, reinforcing the FTC’s commitment to holding major corporations accountable for deceptive subscription practices.
