financetom
Business
financetom
/
Business
/
Amazon to pay $2.5 billion to settle Prime deception allegations
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Amazon to pay $2.5 billion to settle Prime deception allegations
Sep 25, 2025 8:39 AM

WASHINGTON (Reuters) -Amazon.com will pay $2.5 billion in fines and redress to Prime subscribers to settle the U.S. Federal Trade Commission's case alleging the retail juggernaut signed users up for the subscription without their consent and made it difficult to cancel, the FTC said on Thursday.

Of that, $1.5 billion will go into a fund to repay eligible Prime subscribers and Amazon ( AMZN ) will not admit wrongdoing as part of the settlement, the FTC said.

Shares of Amazon ( AMZN ) were nearly unchanged after the news. Amazon ( AMZN ) didn't immediately respond to a Reuters request for comment.

Amazon ( AMZN ) must now make it easy to cancel Prime as part of settlement.

At a trial in Seattle federal court, the FTC accused Amazon ( AMZN ) of duping tens of millions of Prime customers by signing them up without consent and locking them in with overly complex cancellation methods.

The FTC started probing Amazon's ( AMZN ) subscription practices during President Donald Trump's first term and the case was filed during Joe Biden's presidency.

The settlement is the second-largest restitution amount ever for an FTC action, agency officials said, and represents a major win for the FTC's tough on tech agenda, which began during the first Trump administration.

(Reporting by Jody Godoy in New York and Ryan P. Jones in Toronto)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Lockheed Martin Insider Sold Shares Worth $1,941,710, According to a Recent SEC Filing
Lockheed Martin Insider Sold Shares Worth $1,941,710, According to a Recent SEC Filing
Mar 8, 2024
10:16 AM EST, 03/08/2024 (MT Newswires) -- Stephanie C. Hill, Pres. Rotary & Mission Systems, on March 06, 2024, sold 4,499 shares in Lockheed Martin ( LMT ) for $1,941,710. Following the Form 4 filing with the SEC, Hill has control over a total of 16,542 shares of the company, with 12,604 shares held directly and 3,938 shares controlled indirectly....
Update: AltaGas' Q4 Net Income Climbs YOY
Update: AltaGas' Q4 Net Income Climbs YOY
Mar 8, 2024
10:13 AM EST, 03/08/2024 (MT Newswires) -- AltaGas Ltd. ( ATGFF ) on Friday reported fourth-quarter 2023 normalized net income of $214 million, or $0.75 per share, up from $189 million, or $0.67 per share, in the year-ago quarter. Normalized EBITDA for the quarter came in at $502 million, up from $454 million in the prior-year period. The company reiterated...
Rocket Lab USA Insider Sold Shares Worth $285,631, According to a Recent SEC Filing
Rocket Lab USA Insider Sold Shares Worth $285,631, According to a Recent SEC Filing
Mar 8, 2024
10:11 AM EST, 03/08/2024 (MT Newswires) -- Adam C. Spice, Chief Financial Officer, on March 05, 2024, sold 67,160 shares in Rocket Lab USA ( RKLB ) for $285,631. Following the Form 4 filing with the SEC, Spice has control over a total of 1,442,206 shares of the company, with 1,442,206 shares held directly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1819994/000095017024028259/xslF345X03/ownership.xml Price: 4.48, Change:...
Market Chatter: Alibaba Group Video Games Arm's Head to Step Down by March-End
Market Chatter: Alibaba Group Video Games Arm's Head to Step Down by March-End
Mar 8, 2024
10:11 AM EST, 03/08/2024 (MT Newswires) -- Alibaba Group Holding's ( BABA ) Lingxi Games head Zhan Zhonghui said in an email that he will step down by the end of this month, Reuters reported Friday, citing the email. Zhan, who is about 50 years old, will be succeeded by game producer Zhou Bingshu, who is in his mid-30s, according...
Copyright 2023-2026 - www.financetom.com All Rights Reserved