Amazon reaches a $ 2.5 billion settlement with FTC via Prime

Amazon It will pay 2.5 billion dollars to settle the allegations of the Federal Trade Committee that the company suffocated users to pay the price of Prime membership, the organizational agency Declare Thursday.

Surprise settlement comes like Amazon and FTC It was only three days In the trial of the Seattle Federal Court. The arguments occurred in the case on Tuesday, but the settlement allows Amazon to avoid the presence of a jury in the trial, re -damaged more than the settlement with FTC.

the suitThe FTC presented in June 2023 under the Biden Administration, claimed that Amazon had deceived tens of millions of customers to register for the main subscription program and sabotage their attempts to cancel it. Three senior executives in Amazon were at risk of responsibility individually if the jury sided with FTC.

The agency said that the Amazon will pay a civil penalty of one billion dollars to FTC and will return $ 1.5 billion to an estimated 35 million customers who are affected by “unwanted major registration or postponed cancellation.” Under the settlement conditions, Amazon will give $ 51 to qualified customers within 90 days.

Amazon said, she confessed that no violations were committed to agreeing to the settlement.

The agreement is prohibited from distorting the conditions of the prime. It also requires the company to clarify clear disclosure about the conditions of the program during registration, and says that the Amazon must obtain the consumer’s explicit approval before shipping it for subscription. The agency said that Amazon should also provide an easy way for users to cancel their subscription.

As part of the settlement, it will be prohibited from illegal behavior, which is part of the settlement, and two of its executives, its main president, Jani Ghani and Nile Lindsay, the first vice president in the company’s health department and who have played a role in the main business.

The head of the Federal Trade Committee, Andrew Ferguson, described the penalty as a “tremendous victory” of the agency under the Trump administration.

“Trump-VANCE FTC is committed to fighting when companies are trying to deceive ordinary Americans from their hard-to-sized salaries,” Ferguson said in a statement.

Amazon Mark Blafkin said in a statement that the company and its executives “have always followed the law and allowed us this settlement to move forward and focus on innovation for customers.”

Punishment is one of the largest imposition ever by FTC. Agency In 2019 A Facebook, now known as Meta, is a fine of $ 5 billion to violate the privacy of consumers.

However, a fine of $ 2.5 billion equivalent to approximately 0.1 % of the maximum amazon market, which is now nearly $ 2.4 trillion. Amazon shares rose slightly after the announcement.

Amazon’s Prime was launched in 2005, becoming one of the most popular subscription services in the world, with more than 200 million members worldwide, and has achieved billions of dollars for the company. Membership costs $ 139 annually and includes privileges such as free shipping and access to broadcast content. The data has shown The main members spend more and often shop more than the non -first members.

Amazon still faces a greater legal issue with FTC.

In 2023, the organizer accused the company of illegally competing in the e -commerce market. Join FTC by public lawyers from 17 states, in claiming that Amazon used “monopoly power” to amplify prices, reduce quality for shoppers and exclude competitors illegally, thus undermining competition.

Amazon won a partial dismissal from the case last year, but it is still scheduled to be tried against FTC in 2027.

Earlier this month, the American boycott judge oversees the issue of fighting in Google Ruling The most powerful consequences proposed by the Ministry of Justice, including the forced sale of Google’s chrome Browser. Google lost the case against the government last year, but she was forced to strip any major assets.

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