MGN
Amazon agreed to pay $2.5 billion to settle a Federal Trade Commission case over whether it duped customers into signing up for Prime and made it difficult for customers to cancel their membership.
As part of the settlement, announced Thursday, Amazon will provide $1.5 billion in refunds to customers that were harmed by what FTC referred to as “deceptive Prime enrollment practices.” About 35 million Prime customers who were impacted by the practices could qualify for $51 each as part of the settlement, the FTC said in legal documents.
Amazon is also required to pay a $1 billion civil penalty, the largest in any FTC rule violation case to date. The FTC said the $1.5 billion payout to customers is the second-highest restitution award in the agency’s history.
Prime customers who are e