Amazon will pay $2.5 billion to settle FTC claims of deceptive Prime enrollment and cancellation tactics with clearer rules and consumer refunds.
Amazon has agreed to a $2.5 billion settlement with the U.S. Federal Trade Commission after facing accusations that it misled consumers into subscribing to Prime and made cancellations difficult. The agreement resolves long-standing claims about deceptive enrollment practices and subscription traps.
Under the settlement, Amazon will pay a $1 billion fine and issue $1.5 billion in refunds to affected consumers. Those who signed up for Prime between June 23, 2019 and June 23, 2025 and used few benefits may receive an automatic $51 refund. Others who believe they were harmed can claim compensation. The company has denied wrongdoing as part of the agreement.
In addition to financial penalties, Amazon is required to change how it handles Prime subscriptions. The company must include a clear option for users to decline Prime during signup, disclose all subscription terms, and simplify cancellation to make it no longer burdensome. An independent third party will monitor Amazon’s compliance.
This settlement marks one of the largest civil penalties ever achieved by the FTC in consumer protection cases. It underscores increasing regulatory pressure on Big Tech firms to be more transparent and fair in how they market and manage subscriptions.