Amazon will pay $2.5 billion under a proposed order by the Federal Trade Commission to settle allegations the ecommerce giant enrolled millions of consumers in Prime subscriptions without their consent — and deliberately made it difficult for them to cancel.
Amazon will be required to pay a $1 billion civil penalty, provide $1.5 billion in refunds back to consumers “harmed by their deceptive Prime enrollment practices,” and cease its “unlawful enrollment and cancellation practices” for Prime, the agency said. An estimated 35 million consumers have been affected by Amazon’s alleged unwanted Prime enrollment and/or deferred cancellation practices. The agency said the $1.5 billion figure is the second-highest restitution award ever obtained by FTC action.
According to the FTC, eligible customers who were affected by Amazon’s conduct will automatically receive reimbursements of up to $51 within 90 days. That covers consumers who used less than three Prime benefits (e.g., watched a Prime Video show, listened to Amazon Music) in any 12-month subscription period. Other Prime customers will be able to file claims after they get a notice from Amazon, after which they will have six months to submit a claim. Amazon will post links and notices on its website and mobile app with more info about submitting claims.
Reps for Amazon did not immediately respond to a request for comment.
Amazon does not regularly disclose how many Prime customers it has. As of the first quarter of 2025, the company had 197 million U.S. Prime members, according to research firm Consumer Intelligence Research Partners.
The FTC, in a lawsuit filed in 2023, charged that Amazon and several company executives knowingly misled millions of consumers into enrolling in Prime, violating the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). The FTC alleged Amazon created confusing and deceptive user interfaces to lead consumers to enroll in Prime without their knowledge, and also created “a complex and difficult process for consumers seeking to cancel their Prime subscription, with the goal of preventing consumers from cancelling Prime.”
Amazon documents discovered in the lead-up to jury trial showed that execs and other employees knowingly discussed the unlawful enrollment and cancellation issues, with comments like “subscription driving is a bit of a shady world” and leading consumers to unwanted subscriptions is “an unspoken cancer,” per the FTC.
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“Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel,” FTC chairman Andrew Ferguson said in a statement. “The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”
Under the settlement, Amazon must make changes to the Prime enrollment and cancellation flows by including “a clear and conspicuous button for customers to decline Prime.” In addition, Amazon can no longer have a button that says, “No, I don’t want Free Shipping.”
The company also must include “clear and conspicuous disclosures about all material terms of Prime during the Prime enrollment process, such as the cost, the date and frequency of charges to consumers, whether the subscription auto-renews, and cancellation procedures.” Amazon must create an easy way for consumers to cancel Prime, using the same method that consumers used to sign up, according to the FTC. The company also must pay to retain an independent, third-party supervisor to monitor its compliance with the consumer-redress distribution process.
The FTC filed the proposed order in the U.S. District Court for the Western District of Washington.
From Variety US