Fri Sep 26 03:27:59 UTC 2025: **Amazon Settles with FTC for $2.5 Billion Over Prime Enrollment Practices**
**Seattle, WA** – Amazon has agreed to a landmark $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations that the company tricked customers into signing up for Prime memberships and then made it difficult to cancel. The settlement, announced Thursday, includes a $1 billion civil penalty – the largest in FTC history for a rule violation – and $1.5 billion in refunds to affected consumers.
The FTC alleged that Amazon deliberately designed its online interface to confuse customers into subscribing to Prime, sometimes without clearly stating that a purchase would also enroll them in the membership program. The agency also criticized Amazon’s cancellation process, internally dubbed “Iliad,” for being overly complex and time-consuming.
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” said Amazon spokesman Mark Blafkin in a statement. The company, while admitting no wrongdoing, said it chose to settle to avoid years of potential legal battles.
The settlement requires Amazon to refrain from misrepresenting subscription terms, clearly disclose all costs, and obtain express consent before charging customers. The company is also mandated to implement a straightforward cancellation process.
Customers who signed up for Prime via Single Page Checkout between June 23, 2019, and June 23, 2025, may be eligible for automatic refunds of up to $51. Amazon will also establish a claims process for over 30 million customers affected by cancellation process issues.
Despite the significant penalty, Amazon asserts that the settlement does not necessitate any changes to its current Prime sign-up and cancellation procedures. The FTC’s investigation began in 2021 and the lawsuit was filed in 2023 under FTC Chair Lina Khan. This action precedes a separate antitrust lawsuit filed by the FTC against Amazon.
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