Amazon has agreed to pay $2.5 billion in a landmark settlement with the U.S. Federal Trade Commission (FTC) over accusations that it tricked millions of consumers into unwanted Prime subscriptions and made canceling nearly impossible.
Of the total, $1.5 billion will go to refunds for affected customers, while $1 billion is earmarked as a civil penalty. The FTC described the case as the largest civil penalty ever secured for a violation of its rules.
The settlement covers users who were enrolled between June 23, 2019, and June 23, 2025—especially those who signed up via misleading offers or used fewer than three Prime benefits in a 12-month period. Eligible customers will receive automatic refunds of up to $51, with others able to file claims.
Under the agreement, Amazon must also:
Introduce a clear “Decline Prime” option during checkout.
Simplify cancellation flows to prevent confusing or onerous barriers.
Provide plain, conspicuous disclosures of terms, pricing, and auto-renewal policies.
Be overseen by an independent third-party monitor to ensure compliance.
Amazon has denied any wrongdoing but accepted the settlement to avoid prolonged litigation. The company emphasized its commitment to clarity in membership signup and cancellation processes.
0 Comments