Amazon to pay $2.5 billion to settle U.S. lawsuit that it ‘tricked’ people into Prime

Amazon Prime pedicab delivery person on New York City Streets, Manhattan. UCG/UCG/Universal Images Group via G/Universal Images Group Editorial

UCG/UCG/Universal Images Group via G/Universal Images Group Editorial

Amazon has agreed to pay a historic $2.5 billion to settle a landmark case over its Prime membership program. The U.S. government had alleged the company’s web designs manipulated tens of millions of people into paying for subscriptions that were purposefully hard to cancel.

Amazon, without admitting wrongdoing, will pay $1 billion in civil penalties to the government and another $1.5 billion in payments to affected consumers, according to court documents. The company,

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