Amazon to pay for prime subscription fraud
by Alimat Aliyeva
American corporation Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the U.S. Federal Trade Commission (FTC) over misleading practices related to its Amazon Prime subscription service, Azernews reports.
According to FTC representatives, Amazon will pay $1 billion in fines to the government and return an additional $1.5 billion to customers as compensation. The lawsuit alleged that users were signed up for Amazon Prime without explicit consent, and that the company made it deliberately difficult for customers to cancel their subscriptions.
Bloomberg reports that Amazon did not immediately respond to requests for comment. As part of the settlement, Amazon is required to simplify the subscription cancellation process and improve transparency regarding subscription terms.
Amazon Prime offers members benefits such as free and expedited shipping, access to Amazon’s streaming services, exclusive deals, and more — all for an annual fee of $139. This settlement highlights increasing regulatory scrutiny over subscription-based services and the importance of clear, user-friendly cancellation policies in the digital economy.
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