Amazon Settles for $2.5B After Allegations of Tricking Customers Into Prime

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Amazon has agreed to pay $2.5 billion after allegations of them tricking customers into purchasing Amazon Prime and making it difficult to cancel their subscription.

Amazon has reached a historic $2.5bn (£1.9bn) settlement with a US business watchdog over allegations it tricked customers into signing up for Prime membership.

The Federal Trade Commission (FTC) accused the online giant of tricking customers into the membership scheme - which includes perks like faster delivery - and then making it difficult to cancel.

The Seattle-based company will pay $1bn (£750m) in civil penalties, and $1.5bn (£1.1bn) paid back to customers unintentionally enrolled in Prime or deterred from cancelling their subscriptions.

Around 35 million Prime customers will be eligible for a payout from the $1.5bn (£1.1bn) fund, the FTC said.

Customers who signed up for Prime between 23 June, 2019, and 23 June, 2025, through certain offers, and used few Prime benefits afterwards, will automatically receive $51 (£38).

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Source: Sky News

 

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I’m not even surprised. These big companies are best in using fine print to deceive people. One minute you’re trying to check out something and the next thing, you’re subscribed to something you didn’t even plan. I’ve fallen for that kind trick before, not Amazon, but one app that auto-renew my subscribers without notifying me. $2.5 billion is never a small amount of money, but to them it’s like pocket money. They should just do better. Transparency is the best thing.