Amazon to pay US regulators $2.5bn to settle Prime probe

Agreement includes largest ever penalty issued for breach of regulator’s rules

The FTC alleged that the company had duped customers into signing up for its Prime service without their consent, in breach of US consumer protection laws. Photograph: Justin Sullivan/Getty Images
The FTC alleged that the company had duped customers into signing up for its Prime service without their consent, in breach of US consumer protection laws. Photograph: Justin Sullivan/Getty Images

Amazon has agreed to pay $2.5 billion (€2.1 billion) to settle a case brought by the US Federal Trade Commission, in a deal that includes the largest civil penalty ever issued for a violation of the regulator’s rules.

The ecommerce giant on Thursday agreed to pay $1 billion in civil penalties and $1.5 billion in redress to consumers, according to senior FTC officials.

The FTC alleged that the company had duped customers into signing up for its Prime service without their consent, in breach of US consumer protection laws.

The agency also alleged that Amazon was also “sabotaging” efforts made by customers to cancel their subscriptions.

“[Amazon] can no longer deceive consumers to sign up,” said one FTC official. “[This] settlement puts a stop to [Amazon’s] unlawful enrolment practices.”

Amazon did not immediately respond to a request for comment.

More to follow

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