Historic $2.5B Amazon Prime FTC Settlement Offers Major Refunds for Consumers Nationwide

The Federal Trade Commission (FTC) announced this week that it has locked in an unprecedented $2.5 billion settlement with Amazon.com, Inc. over allegations that the retail giant enrolled millions of consumers into Amazon Prime subscriptions without consent and intentionally made it difficult to cancel.

In a September 25 press release, the FTC stated that Amazon will be required to pay a $1 billion civil penalty and provide $1.5 billion in refunds to consumers “harmed by [Amazon’s] deceptive Prime enrollment practices.” The FTC Amazon Prime lawsuit settlement also mandates that Amazon stop its allegedly unlawful enrollment and cancellation practices for Prime.

The $1 billion civil penalty is the largest ever for a lawsuit centered on alleged FTC rule violations, and the $1.5 billion in consumer refunds is the second-highest restitution award ever obtained by the FTC, the agency said.

The consumer-refund portion of the FTC Amazon Prime settlement will provide “full relief” for the approximately 35 million people nationwide affected by unwanted Amazon Prime enrollments or deferred cancellations, the FTC noted.

According to settlement documents, certain eligible consumers who enrolled in an Amazon Prime subscription will automatically receive a refund of their membership fees, capped at a $51 maximum payment, within 90 days of the September 25 order. For other Prime subscribers, Amazon is set to establish and administer a claims process that includes sending a claim form to eligible individuals.

Consumers who are eligible to receive a payout from the FTC Amazon Prime settlement include those in the United States who signed up for a Prime membership on Amazon’s “Single Page Checkout” between June 23, 2019 and June 23, 2025 and those who, during the same time period, unsuccessfully attempted to cancel their subscription by entering, but failing to complete, Amazon’s online cancellation process or by inadvertently taking a “Save Offer” during the cancellation process.

As part of the settlement, Amazon is required to implement meaningful changes to its Prime enrollment and cancellation flows. These revisions, per the FTC, include:

The FTC sued Amazon on June 21, 2023, alleging that the company “knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime,” namely via manipulative or deceptive user-interface tactics known as dark patterns.

The FTC Amazon Prime lawsuit also charged that the company designed the Prime cancellation process to stop consumers from ending their subscriptions, and that company leaders “slowed or rejected” revisions to the process that would have made it easier for consumers to cancel Prime. The FTC alleged Amazon violated the Restore Online Shoppers’ Confidence Act, a law designed to ensure consumers are aware of what they are being charged for online purchases.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” former FTC Chair Lina M. Khan said at the time. “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from ‘dark patterns’ and other unfair or deceptive practices in digital markets.”

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