Amazon Settles $2.5 Billion FTC Case Over Prime Sign-Ups

Amazon.com will pay $2.5 billion to settle a case with the U.S. FTC, which accused it of signing up users for Prime without consent and complicating cancellations. The settlement includes a $1.5 billion fund for customer redress, with Amazon denying any wrongdoing.

Amazon.com has agreed to pay a staggering $2.5 billion in fines and restitution to Prime subscribers to resolve a lawsuit with the U.S. Federal Trade Commission. This case accuses the retail giant of enrolling customers in Prime subscriptions without their consent and making the cancellation process complex and cumbersome, the FTC announced on Thursday.

The settlement stipulates that $1.5 billion of the sum will form a fund to reimburse eligible Prime subscribers. However, Amazon will not acknowledge any wrongdoing in reaching this agreement, according to the FTC. The trial commenced earlier this week in a Seattle federal court, where allegations were made that Amazon misled millions by enrolling them without explicit approval and binding them with intricate cancellation procedures.

The FTC's investigation into Amazon's subscription tactics began under President Donald Trump's administration and culminated in this legal action during President Joe Biden's term.

(With inputs from agencies.)