The Amazon pays $ 2.5 billion to settle FTC claims for customer deception to register in Prime

Amazon will pay a record civil penalty to settle a case with the Federal Trade Committee. The agency accused Amazon Consumer deception to register for Prime membership Without their approval and made it difficult for customers to cancel a lawsuit filed in 2023.

To settle the fees, Amazon agreed to pay a civil penalty of one billion dollars and $ 1.5 billion to recover customers. The company also agreed to “reduce the illegal registration and cancellation practices of Prime”, ” For each ftc.

The agency says that the civil punishment is the largest ever in a case that involves a breach of its rules – it accused Amazon of violating the FTC law and the law of shoppers online. The Federal Trade Committee said that the $ 1.5 billion in the consumer compensation process will provide “a complete mitigation of the 35 million consumers affected by unwanted major registration or postponed cancellation.” He added that this is the second highest recovery award she was ever.

Moreover, Amazon will be banned from using some Dark patterns (That is, deceptive design practices) It has been used to be careful to cancel the initial membership. For example, the settlement prevents the width of a read button, “No, I don’t want free shipping” during the cancellation flow. Instead, he will have to show a “clear and clear button to customers to decline Prime”, according to the terms of the settlement, which does not include acceptance of guilt by Amazon.

The company will also have to provide clearer information about a major subscription to consumers during the registration process. This will include details about the price, whether it is automatic and renewed How to cancel.

“Amazon and our executive managers have always followed the law and allowed us to move forward with the advancement and focus on innovation for customers,” the Amazon spokesman Mark Blavekin said in a statement submitted to Engadget. “We are working incredibly hard to clarify the matter and simplicity of customers by registering or canceling their main membership, and providing a great value to millions of loyal gyms around the world. We will continue to do so, and we look forward to what we will provide to the main members in the coming years.”

Sep 25, 1:47 pm Easter: Amazon’s statement added that the settlement does not include accepting guilt.