Fri Sep 26 06:10:00 UTC 2025: **FOR IMMEDIATE RELEASE**
**Amazon to Pay $2.5 Billion in FTC Settlement Over Alleged Deceptive Prime Enrollment Practices**
**Washington, D.C. –** Amazon will pay a historic $2.5 billion settlement with the Federal Trade Commission (FTC) to resolve allegations that the company tricked consumers into signing up for its Prime subscription service and then made it difficult to cancel.
The settlement, announced Thursday by the FTC, includes a $1 billion civil penalty and $1.5 billion in refunds to an estimated 35 million consumers who were allegedly harmed by Amazon’s deceptive enrollment practices. The FTC said the settlement represents the largest civil penalty in a case involving an FTC rule violation and the second-highest restitution award ever obtained by the agency.
The lawsuit, filed in 2023 under the Biden administration, accused Amazon of employing manipulative tactics to enroll consumers in Prime and then creating a complex cancellation process. The settlement was reached just days into a trial between the FTC and Amazon.
“Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel,” said FTC Chairman Andrew Ferguson. “The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”
As part of the agreement, Amazon is prohibited from using a “No, I don’t want Free Shipping” button and must provide clear and conspicuous disclosures about the terms of Prime during enrollment and easy ways to cancel the program.
In a statement, Amazon spokesperson Mark Blafkin said, “Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers. We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.”
Amazon did not admit to any wrongdoing as part of the settlement and said it has already implemented the changes outlined by the FTC.
Prime, which costs $14.99 per month or $139 annually, is a key component of Amazon’s business, generating billions of dollars in revenue. Emarketer analyst Zak Stambor estimates that the $2.5 billion payout represents 5.6% of Prime’s subscription revenue last year, which raked in $44 billion.
Former FTC chair Lina Khan criticized the settlement, stating that the fine is a “drop in the bucket” for Amazon and that it allows the company to “pay its way out” of potential liability.
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