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Amazon to pay $2.5 billion to settle FTC case over Prime subscription “dark patterns”
Amazon has agreed to a $2.5 billion settlement with the US Federal Trade Commission (FTC) over allegations that it misled customers into signing up for Prime subscriptions and made cancellations difficult. Around 35 million users are eligible for payouts.
“Amazon was aware for years that it was taking consumers' money without their consent, yet chose to do nothing about it,” the FTC stated in a court filing.
Tech giant Amazon will pay $2.5 billion to settle charges that it “duped” customers into signing up for Prime Video and made the cancellation process intentionally confusing. The company reached an agreement with the US Federal Trade Commission (FTC) following an antitrust lawsuit filed in 2023.
According to Reuters, the settlement includes $1 billion in fines to the FTC and $1.5 billion in compensation for affected customers. Although Amazon has not admitted to any wrongdoing, the settlement aims to resolve long-standing complaints about deceptive subscription practices.
The FTC stated that 35 million US Prime customers could be eligible for payouts from the $1.5 billion fund. Those who signed up for Prime between June 23, 2019, and June 23, 2025, through certain online offers, will automatically qualify.
Court documents show that each eligible customer will receive $51 in compensation. The FTC identified several “challenged enrollment flows” — including the Prime Video sign-up page, Shipping Option Select Page, and Single Page Checkout — where users were allegedly misled or tricked into subscribing.
Customers who used their Prime benefits three times or fewer in any 12-month period will automatically receive their $51 payout by December 24, 2025, according to USA Today.
Amazon confirmed that affected users will receive monetary compensation — not gift cards or credits — processed through a third-party claims administrator.
After automatic payments are issued, other eligible customers will be able to submit claims until July 23, 2026. Information on how to file will be shared by January 23, 2026.
FTC Chair Andrew Ferguson described the settlement as “a record-breaking, monumental win for millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”
While the ruling is seen as a victory for consumers, reports note that the penalty is “relatively painless” for Amazon — an amount equivalent to what the company earns in 33 hours of sales.
As part of the agreement, Amazon will now:
Add a “clear and conspicuous” button to decline Prime subscriptions.
Simplify the Prime cancellation process.
Clearly disclose subscription terms during enrollment.
Fund an independent supervisor to ensure compliance.
The $2.5 billion Amazon FTC settlement marks one of the largest ever related to online subscription practices. For millions of users who struggled to cancel Prime, the deal promises not only refunds but a more transparent experience in the future.
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