Amazon has agreed to a record $2.5 billion settlement with the US Federal Trade Commission (FTC). With this settlement, Jeff Bezos ‘ Amazon resolved a two-year legal battle over claims that it tricked customers into signing up for its Prime subscription and made cancellations deliberately difficult.
The settlement, announced Thursday, includes a $1 billion civil penalty and $1.5 billion in refunds to about 35 million consumers who were allegedly harmed by Amazon ’s “deceptive Prime enrollment practices”.
FTC trial against Amazon
The deal was reached just days into the FTC’s trial against Amazon. The US agency filed a lawsuit against the company in 2023 under the Biden administration. However, the FTC’s investigation into Amazon’s subscription practices began during President Donald