Amazon Settles FTC Prime Case for $2.5 Billion
Amazon has agreed to pay $2.5 billion to settle a case brought by the Federal Trade Commission, resolving allegations of misleading customers into signing up for Prime and making it difficult to cancel. The settlement includes a $1.5 billion fund to repay up to 35 million Prime subscribers, with individual payments up to $51. Amazon will also implement clearer opt-out and cancellation options, along with third-party compliance monitoring. The stock remained steady after the settlement announcement.