Amazon Settles $2.5B FTC Lawsuit Over Deceptive Prime Practices
Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) over deceptive Amazon Prime Video subscription practices. The agreement includes a $1 billion civil penalty and sets up a $1.5 billion Consumer Fund for affected customers.
The FTC's lawsuit targeted Amazon's use of 'dark patterns', misleading designs that tricked users into signing up for Prime Video or made cancellations difficult. Eligible consumers are those who signed up between June 23, 2019 and June 23, 2025, using the challenged enrollment flows, and used Prime Video benefits no more than three times within 12 months of signing up.
An estimated 35 million customers are eligible for refunds, with each receiving approximately $42.86 if distributed evenly. Amazon will initially provide automatic refunds of up to $51 within 90 days, with no action required. Remaining eligible customers will receive claims forms, giving them 180 days to submit their claim and receive a refund within 30 days after review.
The settlement requires Amazon to pay a $1 billion civil penalty and establish a $1.5 billion Consumer Fund for affected customers. If less than $1 billion is paid out, Amazon must continue to make more customers eligible until at least $1 billion is distributed. The agreement aims to rectify Amazon's past deceptive practices and compensate those affected.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Manipulating Sympathy: Exploiting Victimhood for Personal Gain
- Prices remain a concern for the Germans
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
