WASHINGTON, D.C. – Today, the FTC settled its case against Amazon’s Prime membership, resulting in a $2.5 billion order that will pay the agency $1 billion and deliver $1.5 billion in select customer refunds.
At least 180 million Americans benefit from the various perks of Prime membership, including fast delivery, discounts at Whole Foods, access to a full suite of entertainment products, and live sports. The Consumer Choice Center was doubtful the case would proceed or ultimately be successful, but this agreement at least curbs the agency’s broader aims against American tech firms providing great value to consumers.
JAMES CZERNIAWSKI, Head of Emerging Technology Policy at the Consumer Choice Center, responded to the settlement:
“Navigating your Amazon Prime membership is easier than trying to petition your own government, so we are glad to see this ill-advised case brought by Joe Biden’s FTC put to bed. Over half of American households have a Prime subscription, not because they were “duped” or bamboozled, but because they saw value in its offerings. The FTC’s move to settle is an acknowledgement that it was in no one’s interest to continue this case, and consumers can go back to enjoying their benefits,” said Czerniawski.
The settlement comes at the same time the Trump administration is vowing to protect US tech firms from international exploitation and similar suits abroad, and while the DOJ and FTC seek similar antitrust cases against other consumer tech companies.
“Now Amazon can refocus its time, attention, and resources to improving its Prime membership to continue delivering value to the tens of millions of consumers in the United States and around the world, and the FTC can refocus its efforts on enforcing antitrust law where consumer welfare is harmed instead of engaging in class action lawfare,” concluded Czerniawski.
The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva. Find out more at consumerchoicecenter.org
