FTC Wins Historic $2.5B Settlement with Amazon Over Prime Enrollment Practices
Date: September 25, 2025
The Federal Trade Commission announced a $2.5 billion settlement with Amazon resolving allegations that the company deceptively enrolled millions of consumers in Prime and made cancellation intentionally difficult. Under the agreement Amazon will pay a $1 billion civil penalty and provide $1.5 billion in consumer redress, while agreeing to reforms that require clearer subscription disclosures and easier cancellation flows.
Key points
- $1 billion civil penalty (largest ever for an FTC rules breach case)
- $1.5 billion in refunds to roughly 35 million affected consumers
- Prohibitions on specific “dark pattern” designs during sign-up and cancellation (for example, cancel flows may no longer show a button labeled “No, I don’t want Free Shipping”)
- Required clearer disclosures on price, auto-renewal, and cancellation at sign-up
- The settlement does not include an admission of guilt by Amazon
Amazon statement
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers… We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.” — Mark Blafkin, Amazon spokesperson
What this means for consumers
Affected customers will be eligible for refunds from the $1.5 billion consumer redress pool; the FTC says this provides full relief for an estimated 35 million consumers impacted by unwanted Prime enrollments or deferred cancellations. The settlement also aims to make subscription practices more transparent and easier to opt out of going forward.
Sources
If you want a deeper dive or help checking whether you’re eligible for a refund, reply and I can help point you to resources.