The Amazon FTC settlement reached on September 25, 2025, requires the tech giant to pay $2.5 billion over misleading Prime subscription tactics.
The deal includes $1.5 billion for refunds and $1 billion in fines, making it one of the largest consumer protection settlements in FTC history.
Refunds Under the Amazon FTC Settlement
Nearly 35 million Prime customers may receive payouts. Those who joined between June 2019 and June 2025 through unclear offers and used fewer than three Prime benefits in their first year will automatically get $51.
Others who faced cancellation issues can also file claims.
Amazon’s Reaction to the Settlement
Amazon said the settlement allows the company to prioritize customer trust.
The company noted: “We work to make Prime simple to join and cancel, while delivering unmatched value.” It added that new measures will ensure greater clarity.
Compliance Rules in the FTC Settlement
The agreement introduces stricter consumer safeguards:
- A prominent “decline” button for Prime sign-ups.
- Clearer subscription terms during checkout.
- Easier cancellation methods.
- Independent monitoring of compliance.
FTC Allegations Against Amazon
According to the FTC, Amazon tricked users into recurring charges by linking “free delivery” offers to Prime sign-ups. Internal records described these tactics as “shady,” leading to millions of unwanted memberships.
The case, filed under the Biden administration, was settled during trial proceedings in Seattle.
Prime’s Role in Amazon’s Growth
Since its launch in 2005 at $79, Prime now costs $139 per year. By early 2025, it generated $23.9 billion in subscription revenue, cementing its importance to Amazon’s business.
Founder Jeff Bezos previously said Prime should feel essential to every customer.
Broader Impact of the Amazon FTC Settlement
This $2.5 billion resolution underscores the FTC’s crackdown on Big Tech.
It also signals stronger consumer protections and increased oversight of digital subscription practices.
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