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What is the Amazon Prime settlement

Asked 2 hours ago

Answer

Amazon settled with the FTC for $2.5 billion over claims it used deceptive tactics to enroll customers in Prime and made cancellation difficult. The settlement includes a $1 billion civil penalty and a $1.5 billion fund to reimburse about 35 million affected customers. Amazon must now obtain explicit consent before charging for Prime and is barred from misrepresenting terms.

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CNBC

Amazon reaches $2.5B settlement over 'deceptive' Prime program

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CNBC
CNBC
Just In
  • Amazon agreed to a $2.5 billion settlement with the FTC over Prime subscription practices. 6s
  • The settlement includes a $1 billion civil penalty and a $1.5 billion consumer reimbursement fund. 35s
  • Amazon is now required to obtain explicit consumer consent before charging for Prime subscriptions. 54s
  • The case named two Amazon executives, who are now prohibited from unlawful conduct. 1m 10s
  • The settlement ends a major consumer protection case and is among the FTC's largest penalties. 1m 24s
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Amazon reaches $2.5B settlement over 'deceptive' Prime program
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CNBC
4 hours ago
Amazon reaches $2.5B settlement over 'deceptive' Prime program

Amazon agrees to a $2.5 billion settlement with the FTC over claims of deceptive tactics in enrolling customers into Prime and making cancellation difficult.

Amazon reaches $2.5B settlement over 'deceptive' Prime program
Icon
CNBC
4 hours ago
Amazon reaches $2.5B settlement over 'deceptive' Prime program

Amazon will pay a $1 billion civil penalty and create a $1.5 billion consumer fund to reimburse 35 million impacted customers.

Amazon reaches $2.5B settlement over 'deceptive' Prime program
Icon
CNBC
4 hours ago
Amazon reaches $2.5B settlement over 'deceptive' Prime program

Amazon is prohibited from misrepresenting Prime's terms and must get express consent before charging for subscriptions.

Amazon reaches $2.5B settlement over 'deceptive' Prime program
Icon
CNBC
4 hours ago
Amazon reaches $2.5B settlement over 'deceptive' Prime program

The key issue was auto enrollment, where consumers were charged without explicit permission and found it difficult to cancel or get reimbursed.

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