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Amazon Settles FTC Case for $2.5 Billion Over Prime Misleading

11/9/2025

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Summary

Story summary

Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of misleading consumers into enrolling in Prime subscriptions without consent.
The settlement allocates $1.5 billion for about 35 million affected users and includes a $1 billion civil penalty, marking the largest penalty for an FTC rule violation.
Users who signed up between June 23, 2019, and June 23, 2025, may receive payments, with automatic disbursements expected by December 25, 2025.
The settlement is pending court approval, and Amazon will adopt new practices to improve customer awareness and simplify cancellation processes.

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Story summary

Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of misleading consumers into enrolling in Prime subscriptions without consent.
The settlement allocates $1.5 billion for about 35 million affected users and includes a $1 billion civil penalty, marking the largest penalty for an FTC rule violation.
Users who signed up between June 23, 2019, and June 23, 2025, may receive payments, with automatic disbursements expected by December 25, 2025.
The settlement is pending court approval, and Amazon will adopt new practices to improve customer awareness and simplify cancellation processes.