Home Amazon Amazon Will Refund $1.5 Billion To Prime Subscribers In $2.5 Billion FTC...

Amazon Will Refund $1.5 Billion To Prime Subscribers In $2.5 Billion FTC Settlement

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E-commerce giant Amazon agreed Thursday to pay $1.5 billion in refunds to customers of its Prime subscription as part of a larger settlement with the Federal Trade Commission over allegations it tricked people into signing up for the free shipping service and made it difficult to cancel.

The refunds are in addition to a $1 billion fine Amazon will pay the government, for a total settlement of $2.5 billion, one of the largest in U.S. history.

The settlement requires Amazon to automatically refund $51 to anyone who signed up for Prime through a deceptive sign-up process and only used the service three times in a 12-month period. The company will also have to send a form to people who used the service more to give them a chance to apply for a refund, too.

“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 Thursday.

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