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Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics
The company will be required to pay a $1 billion civil penalty and provide $1.5 billion in refunds back to an estimated 35 million consumers harmed by the company's "deceptive Prime enrollment practices," the FTC says.
The suit, filed in June 2023 under the Biden administration, claimed that Amazon created confusing and deceptive user interfaces to lead consumers to enroll in Prime without their knowledge. It also created a complex process for consumers looking to cancel their subscription by making them go through unnecessary steps, the FTC alleged. As part of the settlement, Amazon is required to include a clear button for customers to decline signing up for Prime.
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