Amazon.com Inc. has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that the company employed deceptive practices to enroll consumers in its Prime subscription service and made it challenging for them to cancel. This settlement comprises a $1 billion civil penalty and $1.5 billion in refunds to affected consumers.
The FTC’s complaint accused Amazon of using “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns'” to enroll consumers in automatically renewing Prime subscriptions without their consent. Additionally, the agency alleged that Amazon “knowingly complicated” the process for consumers attempting to cancel their Prime memberships. ([time.com](https://time.com/7320708/amazon-prime-ftc-lawsuit-settlement-membership-subscription-cancel-dark-patterns/?utm_source=openai))
Under the terms of the settlement, Amazon is required to implement several changes to its Prime enrollment and cancellation processes. These include providing a clear and conspicuous button for customers to decline Prime, ensuring transparent disclosures about all material terms of Prime during the enrollment process, and creating an easy method for consumers to cancel Prime using the same method they used to sign up. ([ftc.gov](https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon?utm_source=openai))
Eligible consumers who signed up for Prime between June 23, 2019, and June 23, 2025, through certain enrollment flows, and who used no more than three Prime benefits in any 12-month period, will receive automatic refunds of up to $51. Consumers who used more than three but fewer than ten benefits in a year may be eligible to file a claim if they either unintentionally enrolled in Prime or tried to cancel but couldn’t. ([kcra.com](https://www.kcra.com/article/amazon-ftc-settlement-explained-automatic-refund-do-i-qualify-prime-benefits/69689989?utm_source=openai))
Amazon has stated that it has always followed the law and that this settlement allows the company to move forward and focus on innovating for customers. ([forbes.com](https://www.forbes.com/sites/antoniopequenoiv/2025/09/25/amazon-reaches-record-25-billion-settlement-with-ftc-over-deceptive-prime-tactics/?utm_source=openai))
This settlement is one of the largest in FTC history and reflects the agency’s ongoing efforts to address deceptive subscription practices and protect consumer rights in the digital marketplace.