The post Jeff Bezos’ Amazon settles FTC allegations over Prime with $2.5 billion payout appeared on BitcoinEthereumNews.com.

Amazon will pay $2.5 billion to end a federal trial over claims that it tricked millions into paying for Prime and made canceling it intentionally hard. The Federal Trade Commission made the announcement Thursday, according to information from the agency. The settlement shuts down a jury trial that had barely started in Seattle, just three days in, and stops the risk of Amazon being hit with even bigger penalties if the jury had ruled against them. The agency had accused Amazon of using design tricks to get people to sign up for Prime without full consent, and also claimed the company deliberately set up confusing cancellation processes. About 35 million customers were affected, according to the complaint. The trial also placed three of Amazon’s top executives—Jamil Ghani, Neil Lindsay, and one other—at risk of being held personally responsible if the court sided with the FTC. Amazon agrees to pay but denies wrongdoing As part of the agreement, Amazon will send $1 billion to the FTC as a civil penalty and $1.5 billion to users who either didn’t mean to sign up or couldn’t figure out how to cancel. The company will pay out $51 to each eligible user and must do that within 90 days. These payments are tied to what the FTC called “unwanted Prime enrollment or deferred cancellation.” Amazon, however, isn’t admitting to anything. In a statement, company spokesperson Mark Blafkin said, “We have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.” That’s all Amazon had to say about it. But the agreement still forces them to clean up how they sell Prime. From now on, Amazon has to clearly tell people the terms of Prime before charging them. The company also has to get permission before charging…

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Filed under: News - @ September 25, 2025 7:27 pm