The latest headlines from our reporters across the US sent straight to your inbox each weekdayYour briefing on the latest headlines from across the USYour briefing on the latest headlines from across the USAmazon will pay a historic $2.5 billion settlement over its Prime membership after U.S. regulators argued the company swindled millions of users into paying for subscriptions that were intentionally difficult to cancel. The Federal Trade Commission says Amazon has agreed to pay a historic $1 billion in civil penalties to the government, and another $1.5 billion in redress payments to affected customers. Amazon does not have to admit wrongdoing, NPR reported. The surprise settlement comes as Amazon and the FTC were three days into a trial in Seattle federal court. In a lawsuit filed in June 2023, the FTC accused Amazon of deceiving tens of millions of customers into signing up for Prime and hindering users’ ability to cancel the subscription, CNBC reported. Under the settlement, Amazon is not allowed to misrepresent the terms of Prime. The company must now make clear disclosures about the terms of the program during enrollment, and have consumers express consent before charging them for a subscription. open image in galleryAmazon will pay $2.5 billion to settle Federal Trade Commission allegations that it swindled users into paying for memberships that were purposefully difficult to cancel (Copyright 2023 The Associated Press. All rights reserved.)This is a breaking news story, check back for updates…
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Amazon to settle lawsuit over Prime. Here’s what it means for you
