Amazon Settles for a Record $2.5B Over Controversial Prime Practices
Amazon has consented to a historic $2.5 billion settlement, marking one of the largest FTC settlements ever. This resolves allegations that the company deceived millions of customers into unwanted Prime subscriptions.
The settlement comprises a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected customers. These customers can receive up to $51 each. The Federal Trade Commission accused Amazon of employing “dark patterns” – manipulative website designs. These designs were used to enroll customers in Prime without their clear consent and creating a complex cancellation process internally dubbed “Iliad,” referencing Homer’s epic about the decade-long Trojan War.
This agreement was reached just days into a jury trial in a Seattle federal court. While Amazon admitted no wrongdoing, it must now provide clear decline buttons, transparent pricing disclosures, and simplified cancellation processes. Last year, Prime memberships generated over $44 billion for Amazon, with an estimated 200 million Americans using the service. Eligible customers who enrolled between June 2019 and June 2025 will receive automatic refunds.
Source: Federal Trade Commission