Amazon Faces $2.5 Billion FTC Settlement Over Prime Subscriptions
Amazon.com will pay $2.5 billion to settle FTC accusations of signing users up for Prime without consent. $1.5 billion will go to eligible customers. The company agrees to simplify cancellations but admits no wrongdoing. This case supports the FTC's ongoing tech scrutiny.
Amazon.com is set to pay a $2.5 billion settlement to resolve allegations from the U.S. Federal Trade Commission. The FTC accused Amazon of signing up users for Prime subscriptions without consent and making the cancellation process unnecessarily difficult.
As part of the settlement, $1.5 billion will be allocated to a fund to compensate eligible Prime subscribers. Despite the hefty settlement, Amazon will not admit any wrongdoing. The company's stock remained largely unaffected following the announcement.
This case marks a significant victory for the FTC, which has been increasing its scrutiny of tech giants. The investigation began in President Trump's first term, while the case was filed under President Biden. The settlement is noted as the second-largest restitution amount for an FTC action.
(With inputs from agencies.)
- READ MORE ON:
- Amazon
- FTC
- settlement
- Prime
- subscribers
- cancellation
- consent
- Trump
- Biden
- tech scrutiny
ALSO READ
Supreme Court to Decide on Adolescent Age of Consent: Critical Hearing Set for November
USDA's Survey Cancellation Sparks Concerns over Food Insecurity Data
Court Interprets Silence as Consent in Adoption Case
Cyberattack Chaos: European Airports Face Delays and Cancellations
Court Clears Accused: Consent Overrules Marriage Promise Claim
Google News