Amazon is paying a historic $2.5 billion settlement with the Federal Trade Commission, ending a two-year dispute over allegations the company tricked consumers into signing up for its Prime subscription service and then made it hard to cancel. As part of the agreement, Amazon will provide $1.5 billion in refunds to an estimated 35 million customers that were “harmed by their deceptive prime enrollment practices, amounting to just under $43.00 per prime customer.
The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription. The company and executives also did not admit to any wrongdoing, but has made the changes outlined by the FCC.
