Amazon Settles $2.5 Billion Lawsuit Over Deceptive Amazon Prime Subscriptions

Amazon has agreed to a significant settlement of $2.5 billion with the Federal Trade Commission after being accused of misleading customers into signing up for Amazon Prime subscriptions. The settlement, one of the largest in US consumer protection history, includes $1.5 billion to repay eligible subscribers and a $1 billion civil penalty. As part of the agreement, Amazon must make it easier for customers to decline Prime during checkout and simplify the cancellation process.

Amazon’s senior manager, Mark Blafkin, stated that the company has always followed the law and is committed to providing clear and simple options for customers. Despite denying any wrongdoing, Amazon chose to settle in order to focus on its upcoming Prime Big Deal Days event in October.

The FTC initially filed suit against Amazon in 2023, alleging the use of “dark patterns” to push customers towards Prime subscriptions. The complaint stated that Amazon employed manipulative user-interface designs to enroll customers in auto-renewing Prime memberships and made it challenging to cancel.

Customers eligible for compensation include those who signed up for Prime between June 23, 2019, and June 23, 2025, using specific enrollment processes mentioned in the lawsuit. Eligible customers who did not utilize more than three Prime benefits within a year will receive automatic payments from Amazon. Others will need to file a claim, with Amazon required to notify them within 30 days.