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FTC Alleges Amazon Used Subscription Traps, Made Prime Cancellation Difficult
Amazon will pay $2.5 billion including a $1 billion penalty and $1.5 billion in refunds to about 35 million US customers misled into Prime memberships, the FTC said.
- Amazon agreed to pay a $2.5 billion settlement on Thursday, including a $1 billion civil penalty and $1.5 billion in refunds, ending a two-year legal battle after a Seattle federal court trial began.
- The Federal Trade Commission alleged Amazon used misleading `subscription traps` during Prime enrollment, highlighting checkout pop-ups and billing detail collection without clear terms.
- Approximately 35 million affected U.S. customers who signed up between June 23, 2019 and June 23, 2025 could get refunds capped at $51, with automatic payouts within 90 days of the FTC order.
- As part of the settlement, Amazon must provide clear disclosures, simplify cancellations, and remove misleading prompts like the `No, I don't want Free Shipping` button.
- Amazon said it did not admit wrongdoing and implemented changes, but Lina Khan called the settlement a `drop in the bucket`; analysts noted the payout is just over 5% of Prime subscription revenue.
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FTC alleges Amazon used subscription traps, made Prime cancellation difficult
Amazon is under fire for allegedly tricking people into signing up for their Prime subscriptions, and making it hard for them to cancel. The Federal Trade Commission landed a historic $2.5 billion settlement for the company. FOX 10's Ashlie Rodriguez reports.
Amazon Prime settles for $2.5B: Here’s how to get your refund
Amazon settled with the Federal Trade Commission for $2.5 billion in fines over claims that the company allegedly tricked consumers into signing up for Prime and making it hard to cancel. Here's how to get your refund
·New Jersey, United States
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Coverage Details
Total News Sources20
Leaning Left3Leaning Right1Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 30%
C 60%
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