On September 25, 2025, Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) to resolve allegations of misleading Prime subscription tactics.
The deal includes $1.5 billion for eligible customers and $1 billion in fines, without Amazon admitting fault.
Customer Refunds
About 35 million Prime subscribers may receive payouts. Those who joined between June 23, 2019, and June 23, 2025, through misleading offers and used fewer than three Prime benefits in their first year will get $51 automatically. Others who struggled to cancel during this period can file claims.
Amazon’s Response
Amazon stated the settlement lets it focus on customers.
“We strive to make signing up and canceling Prime simple, delivering great value to millions of members worldwide,” the company said, noting changes to improve transparency.
New Rules for Amazon
The agreement requires Amazon to add a clear “decline” button for Prime subscriptions and simplify cancellations.
It must also clarify subscription terms during sign-up and hire an independent monitor to ensure compliance.
FTC’s Allegations
The FTC claimed Amazon used deceptive tactics, like promoting “free” delivery to enroll users without clear disclosure of recurring charges.
Internal discussions reportedly called subscription practices “shady,” leading to unwanted memberships. The case, filed under the Biden administration, was settled during a Seattle trial.
Prime’s Growth
Launched in 2005 at $79 annually, Prime’s fee rose to $139 by 2022. It generated $23.9 billion in subscription revenue in early 2025, a key driver for Amazon.
Founder Jeff Bezos once said Prime should feel essential to consumers.
FTC’s Impact
This $2.5 billion settlement, one of the FTC’s largest, highlights its push to hold tech giants accountable, a focus that began under the first Trump administration.
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