Amazon.com will pay $2.5 billion in fines and reimbursements to settle Federal Trade Commission (FTC) allegations that it misled customers into Prime subscriptions, the agency announced Thursday.
The settlement includes a $1 billion fine to the FTC and $1.5 billion in payouts to roughly 35 million Prime subscribers. Eligible customers will automatically receive $51 if they enrolled between June 23, 2019, and June 23, 2025, through certain offers and made little use of Prime benefits, according to court filings. Customers who attempted but failed to cancel Prime during that period may also submit claims.
The FTC accused Amazon of using deceptive design practices, known as “dark patterns,” to push subscriptions and obstruct cancellations between 2017 and 2022. The agency said Amazon executives repeatedly rejected proposals to make the process clearer before adopting changes in 2022, while under investigation. The FTC sued in 2023.
Amazon did not admit wrongdoing. In a statement, the company said the agreement “allows us to move forward and focus on customers,” adding that most of the required changes were already in place.
As part of the deal, Amazon must introduce a clear “decline” button during sign-up, simplify the cancellation process, and provide more transparent disclosures of subscription terms. An independent monitor will oversee compliance.
While the FTC called the outcome a win for consumers, the financial impact is modest for Amazon, which generates about $2.5 billion in sales every 33 hours. Shares of Amazon remained largely unchanged following the announcement.