Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics

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September 25, 2025, 4:29 PM

• •Amazon to pay $2.5 billion to settle FTC lawsuit.
• •Settlement includes $1 billion penalty and $1.5 billion in refunds.
• •FTC claimed deceptive Prime enrollment and cancellation practices.
• •Amazon must clarify enrollment and cancellation processes.

Amazon has agreed to pay $2.5 billion to settle a lawsuit with the FTC regarding deceptive practices in its Prime subscription enrollment and cancellation process. The company will pay a $1 billion civil penalty and provide $1.5 billion in refunds to affected consumers. The FTC alleged that Amazon used confusing interfaces to enroll users in Prime without their knowledge and made cancellation difficult. As part of the settlement, Amazon must implement clearer enrollment and cancellation procedures.

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