A $2.5 billion settlement |
Amazon agreed Thursday to pay a $2.5 billion settlement after it was accused of "manipulating" customers into getting and keeping Prime subscriptions. The Federal Trade Commission had filed an antitrust lawsuit against the retail giant in June 2023. What’s in the settlement: Amazon agreed to pay $1 billion in civil penalties and $1.5 billion in consumer relief for roughly 35 million customers. https://www.usatoday.com/Millions will get refunds in $2.5 billion Amazon settlement Amazon has agreed to pay what the Federal Trade Commission (FTC) has called a "historic" $2.5 billion settlement after it was accused of manipulating customers into getting and keeping Prime subscriptions. The FTC filed an antitrust lawsuit against the retail giant in June of 2023, alleging that it had enrolled millions of consumers in Prime subscriptions without their consent and then made the subscription t and then made the subscriptions exceedingly difficult to cancel. At the time, Amazon called the suit proof that the FTC had "radically departed from its mission of protecting consumers and competition." But the company settled the case just as the Seattle trial was beginning. The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription," FTC Chairman Andrew Ferguson said in a statement. "Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again." These include ensuring there is a clear and conspicuous button for customers to decline Prime and removing the button saying, "No, I don’t want Free Shipping"; providing clear and conspicuous disclosures of the terms of Prime, including costs, charges and cancellation procedures; creating an easy way for consumers to cancel Prime, using the same method that consumers used to sign up and paying for an independent, third-party supervisor to monitor its compliance." Amazon also agreed to $1 billion in civil penalties and $1.5 billion in consumer relief for roughly 35 million impacted customers. According to court documents, some eligible customers will automatically receive up to $51 in relief, while others will have to submit a claim. "Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers," Amazon's Senior Manager of Policy Communications Mark Blafkin said in a statement. "We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world." VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV PRIME MOVIES HAS TO STREAMLINE ITS BROADCASTING BECAUSE SOMETIMES IT DOESN'T GO ON PROPERLY. |
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