Amazon reaches $2.5 billion settlement with FTC over 'deceptive' Prime practices: Who is eligible for a payout?
(KRON/NEXSTAR) — Amazon has reached what the Federal Trade Commission (FTC) is calling a “historic” $2.5 billion settlement over allegations that the company used “deceptive methods” to enroll millions of customers in Prime subscriptions.
The company had also “knowingly made it difficult” for them to cancel, according to the FTC.
“Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again,” FTC Chairman Andrew N. Ferguson said of the settlement in a notice posted to the FTC website Thursday.
What does the settlement entail?
As a result of the settlement, Amazon will be required to change some of the interfaces and language used to promote Prime subscriptions. For example, in some cases, customers who had wanted to decline Prime were presented with a button reading “No, I don’t want Free Shipping.” The FTC says Amazon can no longer use that button.
The FTC further stipulated that customers, when signing up for Prime, must be presented with clear language outlining the cost, as well as information concerning any........
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