FTC Settles With Amazon for $2.5B Over Prime

The Federal Trade Commission reached a historic $2.5 billion settlement with Amazon over allegations it enrolled millions of consumers into Prime without clear consent and used “dark patterns,” ending a two‑year case that reached trial this week. Under the deal Amazon will pay a $1 billion civil penalty and $1.5 billion in consumer refunds; an estimated 35–40 million customers may be eligible and refunds could be about $51 per person, and Amazon does not admit wrongdoing. The FTC cited internal documents and brought charges involving two executives, saying the company used “sophisticated subscription traps” to inflate enrollments. The settlement requires Amazon to redesign Prime’s enrollment and cancellation flows, include clear disclosures about price, auto‑renewal and cancellation, provide a prominent way to decline Prime, ensure easy cancellation via the same channel used to sign up, and submit to independent compliance monitoring. FTC Chairman Andrew Ferguson called the outcome a landmark win while Amazon said it remains confident in its practices.