FTC settlement

Amazon will pay $2.5 billion to settle FTC accusations of deceptive Prime enrollment practices. The FTC alleged Amazon used manipulative tactics to enroll users and obstructed cancellations. The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected customers. Amazon, while agreeing to the settlement, doesn’t admit wrongdoing. The agreement mandates clear Prime program disclosures and a straightforward cancellation process. The case highlights increasing regulatory pressure on big tech, as Amazon also faces a larger antitrust lawsuit from the FTC.