FTC Secures Historic $2.5 Billion Settlement with Amazon Over Unauthorized Prime Subscriptions
Summary
FTC secures historic $2.5 billion settlement with Amazon for allegedly enrolling millions in Prime subscriptions without consent, requiring $1 billion penalty, $1.5 billion in refunds to 35 million customers, and mandatory implementation of clear cancellation processes.
Key Points
- The FTC secures a historic $2.5 billion settlement with Amazon for allegedly enrolling millions of consumers in Prime subscriptions without consent and making cancellation extremely difficult
- Amazon must pay a $1 billion civil penalty and provide $1.5 billion in consumer refunds to an estimated 35 million affected customers
- The settlement requires Amazon to implement clear decline buttons, transparent disclosures about Prime terms, and easy cancellation processes using the same method customers used to sign up