Amazon Settles Prime Lawsuit with FTC: How Much Subscribers Will Get

streaming services.This meant that more people were signing up for Prime and not realizing they were being charged for it, which led to customer frustration and financial losses.

The settlement with the FTC requires Amazon to pay a whopping $2.5 billion. Most of this money will go towards compensating customers who signed up for Prime between June 23, 2019, and June 23, 2025, as well as those who had trouble canceling their subscriptions. Additionally, Amazon must now make it easier for customers to decline Prime, clearly display pricing and renewal information, and provide a simple way to cancel the service.

In response to the settlement, Amazon stated that they are focused on moving forward and continuing to provide value to their loyal Prime members globally. The company assured customers that they had already implemented many of the required changes and are committed to making the sign-up and cancellation processes clear and straightforward. Amazon also emphasized that the settlement does not indicate an admission of guilt on their part, and they chose to resolve the case to avoid a lengthy trial.

Before the settlement, the FTC accused Amazon of engaging in deceptive practices by making it difficult for users to cancel their Prime subscriptions. Former FTC Chair Lina M. Khan highlighted the significant financial impact these practices had on consumers. The agency’s lawsuit aimed to hold Amazon accountable for violating consumer protection laws, ultimately resulting in the $2.5 billion settlement.