Amazon to refund millions of Prime customers
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4hon MSN
FTC, Amazon agree to record-setting $2.5B settlement over alleged Prime ‘subscription traps’
The deal includes a $1 billion civil penalty — the largest ever in an FTC case involving a rule violation — and $1.5 billion in refunds for consumers who the agency says were harmed by deceptive Prime enrollment and cancellation practices.
A hefty $1.5 billion of the total will go toward customer refunds for those who enrolled in Prime without their knowledge or were unable to cancel.
The FTC said Amazon used “dark patterns” to trick consumers into auto-renewals, then created a complex cancellation process internally dubbed “Iliad” after the Trojan War.