FTC: Amazon misled 35 million Prime customers, $2.5B settlement reached
Sep 25, 2025, 10:28 AM
In an aerial view, an Amazon delivery truck leaves an Amazon distribution center on July 16, 2024 in Richmond, California. (Photo: Justin Sullivan, Getty Images)
(Photo: Justin Sullivan, Getty Images)
Amazon has agreed to pay $2.5 billion to settle a lawsuit with the Federal Trade Commission (FTC) over the company’s Prime subscriptions.
The FTC alleged that Amazon made it too difficult for users to cancel and enrolled some without their consent. As a result of the settlement, Amazon is required to pay $1 billion in civil penalties, provide another $1.5 billion in refunds to consumers harmed by the company’s Prime enrollment practices, and cease unlawful enrollment and cancellation practices for Prime.
An estimated 35 million customers were harmed by Amazon’s “deceptive Prime enrollment practices,” according to the FTC.
The settlement was the largest civil penalty in a case involving an FTC rule violation, and the second-highest restitution award obtained by the FTC.
“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,” FTC Chairman Andrew N. Ferguson stated. “Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again. The Trump-Vance FTC is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay.”
Amazon denied any wrongdoing, but the company will update its cancellation process. More changes are expected in the coming months.
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” Amazon spokesperson Mark Blafkin told CNN in a statement. “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.”
The $2.5 billion payout represents 5.6% of Prime’s subscription revenue last year, according to CNN, which raked in $44 billion.
KIRO Newsradio has reached out to Amazon for comment.
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