Amazon pays $2.5 billion for misleading Prime practices

The US giant Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC), resolving allegations of misleading practices in signing up customers for its Prime program.

The penalty includes $1 billion for the FTC and $1.5 billion in compensation for approximately 35 million customers who signed up for Prime between June 2019 and June 2025 but did not use more than three benefits in the first year.

The FTC sued Amazon in June 2023 for using manipulative and deceptive elements in its user interface that disadvantaged customers and made it difficult for them to cancel their subscriptions. As part of the lawsuit, the company's managers were potentially held personally liable for these practices.

The new agreement requires Amazon to provide clear and understandable information about membership terms, explicitly agree to fees before billing, and offer a simple cancellation process. Amazon described the settlement as an opportunity to focus on improving the customer experience without admitting guilt.

(reuters, sie)