Amazon has agreed to pay a record $2.5 billion to settle Federal Trade Commission allegations that it tricked consumers into signing up for Prime and made cancellations deliberately difficult.
The deal includes a $1 billion civil penalty and $1.5 billion in refunds to about 35 million customers, according to the FTC. It is the largest civil penalty ever tied to an FTC rule violation and the second-highest restitution award in agency history.
Amazon has reached a historic $2.5 billion settlement with the Federal Trade Commission, which said the online retail giant tricked customers into signing up for its Prime memberships and made it difficult for them to cancel after doing so. https://t.co/oV5UddRril
— PBS News (@NewsHour) September 25, 2025
FTC Chairman Andrew Ferguson, appointed under President Donald Trump, called the case a “monumental win” for Americans frustrated by deceptive subscription practices. The lawsuit, filed in 2023, accused Amazon of using “subscription traps” to boost Prime enrollment.
Amazon denied wrongdoing, but agreed to simplify the cancellation process and provide clearer disclosures. Prime, which generates more than $40 billion annually, remains one of Amazon’s most profitable businesses.
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TIPP Staff
