Amazon to Pay $2.5 Billion FTC Settlement Over Deceptive Prime Subscription Practices

  • Amazon has agreed to pay $2.5 billion settlement with the Federal Trade Commission (FTC), including $1 billion in civil penalties and $1.5 billion for consumer refunds.
  • Roughly 30–35 million customers are eligible for the refunds. Users who signed up via specific offers between June 23, 2019 and June 23, 2025 will receive automatic refunds (up to $51 in some cases).
  • FTC accused Amazon of deceptive sign-ups, hiding that a purchase option also enrolled users in Prime, and making cancellations intentionally difficult, violating the Restore Online Shoppers’ Confidence Act.
  • Amazon must clearly disclose subscription costs, provide an obvious opt-out button, make cancellations easy, and submit to independent monitoring.
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