The Federal Trade Commission has reached a $2.5 billion settlement with Amazon over its Prime subscription practices, following allegations that the company misled customers into signing up and made canceling memberships unnecessarily difficult.
The FTC accused Amazon of duping consumers into Prime subscriptions through deceptive design choices and automatically renewing memberships without clear consent. The agency also alleged that Amazon created obstacles for customers trying to cancel the service.
Amazon has repeatedly denied wrongdoing but agreed to the settlement, which includes a $1 billion civil penalty and $1.5 billion set aside for customer payouts.
According to CBS News, the average payout is estimated to be about $51 per eligible customer, though details on how individuals c