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Amazon slapped with a $2.5 billion fine for Prime shenanigans

Amazon’s empire is getting a wake-up call with a $2.5 billion settlement to the FTC. Say goodbye to tricky Prime membership tactics.

$2.5 billion Amazon fine, digital marketplace regulation, e-commerce accountability, online store enforcement, tech industry crackdown, Amazon legal action, antitrust issues.

Jeff Bezos’s empire just got slapped with a reality check that costs more than most countries’ GDP.

Amazon agreed to fork over a whopping $2.5 billion to settle FTC claims that they’ve been playing dirty pool with Prime memberships—and honestly, it’s about damn time.

The FTC basically called Amazon out for being subscription scumbags, using shady dark patterns to trick customers into Prime memberships and then making it harder to escape than a David Blaine magic trick.

We’re talking about 35 million customers who got bamboozled, each getting roughly $42.86 back (if you’re doing the math at home).

The settlement breaks down to a cool $1 billion civil penalty plus $1.5 billion in customer refunds. For context, Amazon pulled in $59.2 billion in net income last year, so this is basically pocket change for them—but hey, at least it stings a little.

The real victory here isn’t just the money. Amazon now has to completely overhaul their subscription game.

No more of those bullshit buttons that say “No, I don’t want Free Shipping” (because who the hell would click that?). They’re required to add a “clear and conspicuous” decline button and make canceling as easy as signing up.

FTC Chairman Andrew N. Ferguson called this a “record-breaking, monumental win,” and honestly? He’s not wrong.

Amazon also agreed to pay for a third-party monitor to babysit their compliance—because apparently, we can’t trust them to play nice without supervision.

Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at kevin@knowtechie.com.

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