The Fort Worth Press - Amazon to pay $2.5 bn to settle Prime enrollment case

USD -
AED 3.672501
AFN 64.52571
ALL 80.938098
AMD 360.576387
ANG 1.789785
AOA 917.999932
ARS 1545.6747
AUD 1.444875
AWG 1.8025
AZN 1.703137
BAM 1.743425
BBD 2.008887
BDT 123.879606
BGN 1.747831
BHD 0.376622
BIF 2990.256817
BMD 1
BND 1.276598
BOB 11.853793
BRL 5.5091
BSD 0.997402
BTN 93.614366
BWP 13.704149
BYN 2.9865
BYR 19600
BZD 2.006035
CAD 1.41204
CDF 2290.999829
CHF 0.81983
CLF 0.024617
CLP 968.859751
CNY 6.672799
CNH 6.668095
COP 3276.19
CRC 451.767894
CUC 1
CUP 23.937993
CVE 98.289855
CZK 21.698029
DJF 177.613956
DKK 6.66336
DOP 60.687368
DZD 136.04195
EGP 53.883964
ERN 15
ETB 161.149607
EUR 0.89138
FJD 2.251802
FKP 0.745155
GBP 0.74395
GEL 2.590006
GGP 0.745155
GHS 11.655012
GIP 0.745155
GMD 73.999734
GNF 8836.612261
GTQ 7.621578
GYD 209.09492
HKD 7.84295
HNL 26.806973
HRK 6.76901
HTG 130.734569
HUF 322.986499
IDR 18064
ILS 3.15879
IMP 0.745155
INR 93.507201
IQD 1515
IRR 1902285.498929
ISK 122.269598
JEP 0.745155
JMD 158.448586
JOD 0.708969
JPY 158.067997
KES 129.920265
KGS 87.449705
KHR 4070.189826
KMF 438.999567
KPW 899.999961
KRW 1346.530143
KWD 0.31083
KYD 0.831242
KZT 447.498028
LAK 22499.999997
LBP 89319.272786
LKR 331.641135
LRD 169.5645
LSL 16.469788
LTL 2.95274
LVL 0.60489
LYD 6.409256
MAD 9.744659
MDL 17.9789
MGA 4595.000057
MKD 54.854897
MMK 2099.696522
MNT 3601.450067
MOP 8.055785
MRU 40.486176
MUR 47.03024
MVR 15.409869
MWK 1729.518682
MXN 18.52502
MYR 4.0547
MZN 63.909689
NAD 16.469537
NGN 1346.109721
NIO 36.620046
NOK 9.39945
NPR 149.780494
NZD 1.77432
OMR 0.384466
PAB 0.997491
PEN 3.432117
PGK 4.489495
PHP 63.0895
PKR 276.610825
PLN 3.90925
PYG 6234.539563
QAR 3.646056
RON 4.761797
RSD 104.82994
RUB 82.499887
RWF 1475.64438
SAR 3.760416
SBD 8.097299
SCR 14.644689
SDG 601.49594
SEK 9.80022
SGD 1.27851
SHP 0.744075
SLE 22.950064
SLL 20969.504398
SOS 570.058343
SRD 37.551984
STD 20697.981008
STN 21.839608
SVC 8.727821
SYP 13001.999685
SZL 16.397096
THB 33.425966
TJS 9.156323
TMT 3.51
TND 3.007498
TOP 2.40776
TRY 50.2297
TTD 6.76493
TWD 32.865501
TZS 2644.998026
UAH 45.437804
UGX 4084.37961
UYU 40.220535
UZS 11964.539608
VES 897.18025
VND 25577.5
VUV 120.001108
WST 2.780103
XAF 584.706737
XAG 0.018866
XAU 0.000243133308
XCD 2.70255
XCG 1.797623
XDR 0.707052
XOF 584.706737
XPF 106.750407
YER 236.502614
ZAR 16.378835
ZMK 9001.198196
ZMW 20.272505
ZWL 321.999592
SSP 5745.814556
MXV 2.082538
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

Amazon to pay $2.5 bn to settle Prime enrollment case
Amazon to pay $2.5 bn to settle Prime enrollment case / Photo: © AFP

Amazon to pay $2.5 bn to settle Prime enrollment case

Amazon agreed Thursday to pay $2.5 billion to settle allegations from a US regulator that it used deceptive practices to enroll consumers in Amazon Prime and made it difficult to cancel subscriptions.

Text size:

The Federal Trade Commission's lawsuit, filed in federal court in Seattle, alleged that Amazon knowingly tricked consumers into signing up for the $139-per-year Prime service during checkouts.

"Today, we are putting billions of dollars back into Americans' pockets, and making sure Amazon never does this again," FTC Chairman Andrew Ferguson said in a statement.

The FTC, under the leadership of President Donald Trump, "is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay," he added.

In a statement, Amazon said the company "and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers."

The online retail giant, which admitted no wrongdoing in the settlement, added that it worked "incredibly hard to make it clear and simple for customers to both sign up for or cancel their Prime membership and to offer substantial value for our many millions of loyal Prime members around the world."

Amazon will pay $1.5 billion into a consumer fund for refunds and $1 billion in civil penalties.

The case centered on two main allegations: that Amazon enrolled customers without clear consent through confusing checkout processes, and that it created a deliberately complex cancellation system internally nicknamed "Iliad" -- after Homer's epic about the long, arduous Trojan War.

The FTC alleged that Amazon's checkout process forced customers to navigate confusing interfaces where declining Prime membership required finding small, inconspicuous links -- while signing up for the service used prominent buttons.

Crucial information about Prime's price and automatic renewal was often hidden or disclosed in fine print, the FTC also alleged.

- 'Drop in the bucket' -

Under the settlement, made on what would have been the third day of testimony in front of a jury, Amazon must reform its Prime enrollment and cancellation processes.

This includes introducing a clear option for customers to decline Prime membership, and refraining from vague or indirect references like "no thanks, I don't want free shipping."

The company must also implement new disclosure requirements before charging consumers and always disclose the price and auto-renewal feature on the Prime sign-up page.

Amazon said many of these changes have already been made.

A top FTC official who brought the case under the previous Biden administration said Amazon and the executives named in the lawsuit got off easy with the settlement.

"A $2.5 billion fine is a drop in the bucket for Amazon and, no doubt, a big relief for the executives who knowingly harmed their customers," said former FTC chair Lina Khan.

Critics maintained that the agreement came after it became clear that Amazon was on the defensive in the proceedings.

In a pre-trial defeat, the court ruled last week that Amazon Prime subscriptions are subject to consumer protection laws and that Amazon had illegally obtained consumers' billing information before fully disclosing subscription terms.

The case is part of a volley of lawsuits launched in recent years in a bipartisan effort to rein in the power of US tech giants after years of government complacency.

J.P.Cortez--TFWP