Amazon Settles FTC Prime Suit for $2.5 Billion

Amazon agreed to pay $2.5 billion to settle an FTC lawsuit alleging it used deceptive “dark pattern” designs to enroll consumers in auto‑renewing Prime subscriptions and made cancellation intentionally difficult, reaching the deal days after a Seattle trial began. The settlement splits into a $1 billion civil penalty and $1.5 billion in consumer redress; about 35 million Prime subscribers are expected to be eligible for payments of up to roughly $51 each, and Amazon did not admit wrongdoing. Under the agreement Amazon must stop misrepresenting Prime’s terms, obtain clear consent before charging, provide conspicuous opt‑outs and cancellation flows as easy as enrollment, and submit to third‑party compliance monitoring. FTC Chair Andrew Ferguson called the settlement a major victory against deceptive subscription tactics, and Amazon said the deal allows it to move forward; the company's stock showed little immediate movement. Amazon still faces separate FTC antitrust litigation that will proceed independently.