Amazon agrees to pay $2.5bn over claims it tricked Prime customers

September 25, 2025

Amazon has agreed to a $2. 5 billion settlement with the Federal Trade Commission (FTC) over allegations that it misled millions of customers into signing up for Prime memberships and made cancellation difficult. Of this amount, $1.

Who is affected

An estimated 35 million people in the US who were affected by Amazon's subscription practices between June 2019 and June 2025
Prime subscribers who used benefits fewer than three times over a year after enrolling (eligible for automatic refunds)
Prime subscribers who used benefits fewer than 10 times over a year (eligible for refunds by filing claims)
Amazon as a corporation facing regulatory consequences

What action is being taken

Amazon is paying a $2.5 billion settlement, with $1.5 billion allocated for customer refunds
The FTC is administering refunds worth up to $51 to affected customers
Amazon is automatically refunding customers who used Prime benefits fewer than three times over a year
Amazon is creating an easier way to cancel Prime subscriptions
Amazon is discontinuing the use of misleading buttons like "No, I don't want free shipping"

Why it matters

This represents the largest civil penalty ever secured by the FTC
The settlement addresses deceptive subscription practices that affected millions of consumers
The case highlights regulatory scrutiny of "subscription traps" designed to manipulate consumers
It demonstrates continued regulatory focus on tech companies under both Democratic and Republican FTC leadership
Internal Amazon documents revealed awareness of potentially questionable subscription practices, with executives describing subscription tactics as "a bit of a shady world"

What's next

No explicit next steps stated in the article

Read full article from source: BBC