Amazon will pay $2.5 billion to settle allegations it tricked millions into Prime and made cancellation too difficult.
The settlement includes $1 billion in civil penalties, the largest fine in Federal Trade Commission (FTC) history. It also provides $1.5 billion in refunds to customers who were unintentionally enrolled or deterred from canceling, according to the FTC.
Eligible customers include those who used Amazon’s “Single Page Checkout” between June 23, 2019, and June 23, 2025.
The FTC filed its lawsuit in U.S. District Court in Seattle in 2023. It began investigating two years earlier. The agency alleged Amazon violated the Restore Online Shoppers’ Confidence Act, which requires clear disclosure of charges in online sales.
“This is consistent with Chairman Ferguson’s agenda for the agency, where he is focused on the U.S. consumer first and foremost and making them whole,” an FTC official said during a call with reporters, according to The New York Times.
Amazon denied wrongdoing but agreed to settle after a jury trial began in Seattle this week. Amazon said in a 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 work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world. We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.”
Prime offers faster shipping, video streaming, and Whole Foods discounts for $139 annually or $14.99 monthly. The service has over 200 million members worldwide. It generated more than $44 billion in subscription revenue last year.
FTC officials said eligible customers could receive $51 each. Amazon will notify other customers that they may submit claims if they believe they enrolled unintentionally or struggled to cancel.