AssetID: 55126600
Headline: UNCAPTIONED: Amazon Reaches $2.5bn Settlement Over Alleged Prime Enrollment Tricks
Caption: Amazon Reaches $2.5bn Settlement Over Alleged Prime Enrollment Tricks. Amazon has agreed to a $2.5bn settlement with the Federal Trade Commission over allegations it tricked customers into signing up for Prime membership. The settlement includes $1bn in civil penalties and $1.5bn returned to customers unintentionally enrolled or deterred from cancelling Prime. Around 35 million Prime customers who signed up between June 2019 and June 2025 and used few benefits will automatically receive $51 each. The FTC accused Amazon of making it difficult to purchase items without subscribing to Prime and obscuring the enrollment process. Cancelling Prime was complicated, requiring customers to confirm on three pages, a process internally referred to as “Iliad”. The settlement came days after a trial began in Seattle and Amazon, while admitting no wrongdoing, opted to resolve the case quickly. Amazon is now prohibited from misrepresenting subscription terms, must fully disclose costs, and obtain customers’ express consent for charges. The company said the settlement does not require additional changes beyond maintaining the current sign-up and cancellation procedures. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Amazon,Federal Trade Commission,Prime membership,settlement,civil penalties,customer refund,subscription,Iliad,trial,consumer protection
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