The trial against Amazon in Seattle started this week after the case was filed two years ago.
Amazon, the world’s largest e-commerce company, has been fined $2.5 billion (around Rs 2,21,80,87,70,750). According to a Reuters report, the US Federal Trade Commission (FTC) had accused the company of misleading customers into purchasing Prime subscriptions. To settle the case, Amazon has agreed to pay the amount. Out of the penalty, $1.5 billion will be distributed among nearly 35 million Prime subscribers, while $1 billion will go to the FTC.
Which Amazon Prime Members Will Receive Amount?
As part of the settlement, Amazon has not admitted wrongdoing. Court documents state that customers who signed up for Prime between June 23, 2019, and June 23, 2025, through certain offers and later did not use the benefits extensively, will automatically receive $51. Customers who attempted to cancel Prime during that period but were unsuccessful will also be eligible to claim compensation. The company said this deal will allow it to move forward and focus on its customers.
What Changes Amazon Needs To Do?
Under the agreement, Amazon will be required to add a clear and simple button for customers to decline Prime subscriptions. It must also make the cancellation process easier, clearly disclose terms and conditions at sign-up, and appoint an independent supervisor to ensure compliance.
Amazon stated that most of these changes have already been implemented and only minor additional adjustments will be needed. The FTC had alleged that between 2017 and 2022, Amazon executives resisted changes that would have simplified the signup and cancellation process. The company only made updates in 2022 after the FTC launched its investigation, which later led to the lawsuit.
