Amazon was ordered to pay $2.5 billion in a settlement with the U.S. Federal Trade Commission (FTC) for complicating the cancellation of Amazon Prime subscriptions. The decision, announced in September 2025, benefits around 35 million users who subscribed between June 23, 2019, and June 23, 2025. The company must refund up to $51 per customer and implement simpler cancellation processes. The FTC accused Amazon of misleading consumers with a confusing signup system.
Approximately $1.5 billion will be allocated to automatic refunds for customers who used Prime benefits three times or less in a 12-month period. The company will also pay $1 billion in civil penalties to the government. The case was settled after three days of trial in Seattle.
Payments are scheduled to be completed by December 24, 2025.
- Eligible customers do not need to request refunds, which will be automatic.
- The maximum amount per user is $51, depending on service usage.
- Amazon denies wrongdoing but accepted the settlement to avoid prolonged litigation.
Details of the FTC settlement
The FTC alleged Amazon used an intentionally complex cancellation process with multiple steps to retain subscribers. The settlement prohibits the company from misleading consumers about Prime terms.
Amazon must now display clear information during signup and obtain explicit consent before charging fees.
Changes to the cancellation process
The company removed deceptive buttons, such as “No, I don’t want free shipping.”
Users now find a streamlined system to terminate their subscription.
Amazon Prime benefits
Amazon Prime offers fast shipping, video streaming, and discounts at Whole Foods.
The service costs $139 per year or $14.99 per month in the US.
Profile of affected users
Customers who used the single-page checkout between 2019 and 2025 are eligible.
The group includes those who faced difficulties canceling or were enrolled unintentionally.
Approximately 35 million users may receive refunds, per estimates.
Amazon will automatically identify eligible users based on usage data.
Context of the legal process
The lawsuit began in 2023, with the FTC accusing Amazon of deceptive practices.
The Seattle trial aimed to determine if the company violated consumer protection laws.
The settlement was deemed a historic win by the FTC, which previously fined Meta.
Amazon stated it always followed the law and the deal allows focus on customer innovation.
Payments and deadlines
Amazon will initiate automatic refunds without user action. The process will conclude by late December 2025, per the established timeline. Customers with minimal Prime usage in a subscription year will receive proportional amounts, capped at $51. The company may make additional payments in specific cases, per the agreement. The FTC emphasized that the measure returns billions to consumers and ensures more transparent practices moving forward.
Preventive measures adopted
Amazon revised the Prime signup process to avoid future accusations.
New guidelines require clarity in terms and explicit user consent.