Crucial information about Prime’s price and automatic renewal was often hidden or listed only in fine print, the FTC said. It also would have been difficult for customers to cancel the subscription.
Of the amount, $1.5 billion will be used to reimburse eligible Prime subscribers. Tens of millions of customers are estimated to be affected.
Amazon does not admit fault in the settlement. The company does promise to add a “clear and conspicuous” button that will make it easier for customers to decline or cancel a subscription.
According to former FTC Chairman Lina Khan, Amazon is getting away with the settlement. It allows the company to “buy itself free” and saves itself from a “likely conviction for breaking the law.” According to her, the amount does not amount to much for the company and is a “considerable relief for the executives who knowingly harmed their customers.”
The case against Amazon was filed two years ago and began a few days ago.
