Archive · 26 Sep 2025
Amazon Settles FTC Lawsuit for $2.5 Billion Over Prime
Amazon will pay $2.5 billion to settle a case with the FTC.
The FTC claimed Amazon tricked people into Prime memberships and made it difficult to cancel.
A $1 billion fine will be paid, with up to $1.5 billion going to customers.
About 35 million customers are potentially eligible for compensation.
Amazon will automatically refund $51 to eligible customers.
Amazon reached a settlement with the FTC.
The settlement resolves allegations of deceptive Prime enrollment.
Amazon will pay a $1 billion civil penalty and customer refunds.
Approximately 35 million customers are potentially affected.
Amazon will make Prime cancellation easier.
- Who
- Amazon and the Federal Trade Commission (FTC)
- What
- Amazon settled a lawsuit regarding Prime memberships.
- When
- Announced Thursday
- Where
- N/A
- Why
- To resolve allegations of deceptive enrollment and cancellation practices for Prime.
FTC/Critics
Amazon
Effectiveness of Settlement
FTC/Critics
The FTC believes the settlement is a win for consumers.
Amazon
Amazon stated the settlement allows them to move forward.
- Settlement Amount
- $2.5 billion
- FTC Civil Penalty
- $1 billion
- Customer Refunds
- Up to $1.5 billion
- Affected Customers
- Approx. 35 million
- Refund Eligibility
- Customers signed up 2019-2025 via deceptive process
Sources
Amazon to pay $2.5 billion to settle FTC allegations it duped customers into enrolling in Prime
Amazon to pay $2.5 billion to settle Prime deception allegations
Amazon to pay USD 2.5 billion to settle FTC allegations it duped customers into enrolling in Prime
Amazon Agrees To Pay $2.5 Billion In FTC Settlement Of Claims Of Unauthorized Enrollment In Prime Memberships
‘Sophisticated subscription traps’: Amazon to pay $2.5 bn settlement for ‘tricking customers’ into signing up for Prime
Amazon hit with record $2.5 billion fine for misleading Prime subscribers
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Amazon to Pay $2.5 billion For Allegedly Duping Millions to Sign Up For Prime
Amazon To Pay $2.5 Billion For Tricking Customers Over Prime Membership
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Amazon Fined $2.5 billion For Misleading Users To Sign Up For Prime, All Details Here
Amazon to pay $2.5 billion in settlement over 'Prime trap' charge. Case explained
Amazon to pay $2.5 billion for allegedly duping millions to sign up for Prime
