Amazon has reached a landmark agreement with the U.S. Federal Trade Commission, agreeing to pay a total of $2.5 billion to resolve allegations that it misled customers into signing up for its Prime service without clear consent and impeded cancellation efforts.
Under the settlement:
- $1 billion will go toward a civil penalty.
- $1.5 billion will be used to reimburse eligible consumers.
The deal affects customers who enrolled in Prime between June 23, 2019, and June 23, 2025, particularly those who signed up through allegedly deceptive processes and used three or fewer Prime benefits in the following year. These users may receive automatic refunds up to $51. Others who used more benefits or attempted to cancel unsuccessfully will have to submit a claim.
Amazon denies admitting any wrongdoing. As part of the terms, the company must also reform how it presents Prime enrollment and cancellation flows—requiring clear opt-out options and simplified cancellation, among other changes.
FTC Chair Andrew Ferguson hailed the agreement as a major win for consumers, emphasizing that it “puts billions of dollars back into Americans’ pockets.” The settlement marks one of the largest ever obtained by the FTC in restitution payouts and penalties.
