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summary of Amazon to pay $2.5 bil. to settle claims it cheated customers

1. Amazon agreed to pay a $2.5 billion settlement to resolve allegations that it misled users into joining its Prime subscription service.
- The US Federal Trade Commission filed a lawsuit in 2023, claiming that Amazon deceived consumers by emphasizing free shipping while complicating the cancellation process for Prime subscribers.

2. Under the settlement, Amazon will pay a $1 billion civil penalty and provide approximately $1.5 billion in refunds to an estimated 35 million affected customers.
- Additionally, the company is required to simplify the Prime cancellation process.

3. Amazon maintains that it and its executives have always followed the law, and the settlement allows them to move forward and focus on innovating for their customers.
Summary
Amazon agreed a $2.5 billion settlement in 2023, resolving allegations of misleading consumers into Prime subscriptions. The US Federal Trade Commission alleged Amazon emphasized free shipping while complicating the cancellation process for subscribers. The settlement includes a $1 billion civil
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ID: cf0d0196-7ade-4ec8-8855-7a8587ceff85

Category ID: listed_summary

Created: 2025/09/27 07:01

Updated: 2025/12/08 01:47

Last Read: 2025/09/27 20:04