Amazon to pay $2.5 billion to settle FTC lawsuit over Prime enrollments

Amazon has agreed to a $2.5 billion settlement with the U.S. Federal Trade Commission (FTC) after being accused of using deceptive design to enroll millions in Prime and making cancellations difficult. The settlement was announced shortly after a jury trial began in Seattle.

Key points

• Total settlement: $2.5 billion
• Breakdown: $1 billion civil penalty to the FTC; $1.5 billion in refunds to roughly 35 million affected customers (payments up to about $51 each)
• Allegations: Use of “dark patterns” and confusing checkout flows that led to unintended Prime enrollments and made opt-out/cancellation intentionally hard
• Case timeline: Lawsuit originally filed in 2023; settlement came as the Seattle trial was commencing

What this means

The FTC called the agreement historic, signaling stronger enforcement against manipulative subscription designs. Consumers impacted may receive refunds; the settlement could spur changes in how subscription checkouts are presented across platforms.

Sources

Official FTC press release: https://www.ftc.gov/news-events/news/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon
Additional coverage: Fortune, TechCrunch

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