Amazon to pay $2.5 billion over Prime membership complaints

CONNECTICUT– Amazon has agreed to pay $2.5 billion to settle a major case brought by the U.S. Federal Trade Commission (FTC). The case accused Amazon of tricking millions of customers into signing up for its Prime membership without clear permission and making it difficult for them to cancel.

According to the FTC, Amazon used confusing website designs and misleading buttons that led people to join Prime without realizing it. In many cases, customers were charged for the service even though they didn’t intend to sign up. The FTC also said that Amazon made the cancellation process complicated, with multiple steps and unclear instructions that discouraged users from leaving the service.

Prime is Amazon’s paid membership program that offers free shipping, streaming services, and other benefits. While it has millions of subscribers, many people have complained that they were enrolled without their full understanding.

The $2.5 billion settlement is one of the largest ever in a consumer protection case in the United States. The money will be used to help affected customers and to support efforts to improve transparency.