Current and former Amazon Prime members will be a part of what the Federal Trade Commission is calling a “historic” $2.5 billion settlement.
The lawsuit claims Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made it difficult for consumers to cancel.
As a result, the online retail giant is required to pay a $1 billion civil penalty as well as an additional $1.5 billion in refunds to customers who were “harmed by their deceptive Prime enrollment practices.”
Amazon is also required to discontinue “their deceptive Prime enrollment practices,” and “unlawful enrollment and cancellation practices for Prime.”
The lawsuit states that Amazon’s practices violated the Federal Trade Commission Act and the Restore Online Shoppers’ Confidence A