Amazon will pay US$2.5 billion to settle allegations from the US Federal Trade Commission that it misled users into signing up and paying for Prime memberships.

The settlement was reached three days into a trial in Seattle federal court after the FTC sued Amazon in June 2023, claiming the company deceived tens of millions of customers and sabotaged their attempts to cancel Prime.

Under the settlement, Amazon must clearly disclose Prime’s terms during sign-up, obtain express consent before charging, and provide an easy way to cancel.

The agreement also prohibits Amazon and two executives, Jamil Ghani and Neil Lindsay, from engaging in unlawful conduct in the future.

🔗 Source: CNBC

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