FTC fines Amazon $2.5B over deceptive Prime subscriptions

The Federal Trade Commission (FTC) has reached a landmark $2.5 billion settlement with Amazon over deceptive practices related to Prime subscriptions, including enrolling millions of consumers without their consent and making cancellations difficult. As part of the settlement, Amazon will pay a $1 billion civil penalty—the largest ever in an FTC case—and $1.5 billion will be refunded to affected customers. The FTC accused Amazon of using confusing checkout flows and deceptive user interfaces, known as "dark patterns," to trick users into unwanted Prime enrollments and complicate cancellations. Internal Amazon communications revealed executive awareness of these tactics, leading to charges against senior company executives. Amazon is required to overhaul the Prime sign-up and cancellation processes, including implementing clear disclosures and easy cancellation methods, and to submit to independent compliance monitoring. The settlement resolves a 2023 complaint and avoids a pending trial, with refunds and new consumer protections expected to be implemented soon.