Amazon Settles for $2.5 Billion Over Misleading Prime Subscriptions

Washington, D.C. — Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding claims that the company misled consumers into enrolling in its Prime subscription service without clear consent. The agreement, announced on November 5, 2025, will provide compensation to millions of affected customers.

The FTC accused Amazon of using deceptive practices, making it challenging for customers to cancel their subscriptions. Although Amazon has agreed to the settlement, it did not admit any wrongdoing in the matter.

Of the total settlement amount, $1.5 billion will be returned to an estimated 35 million consumers who signed up for Amazon Prime between June 23, 2019, and June 23, 2025, while the remaining $1 billion will be paid as a civil penalty, the largest in an FTC rule violation case.

Eligible customers will receive a payment of up to $51, depending on their subscription and usage. Those who signed up through methods the FTC described as “challenged enrollment flows,” like the Universal Prime Decision Page or the Prime Video enrollment flow, will automatically receive compensation. These payments are set to be issued by December 25, 2025.

The second group of eligible users, who may have had difficulty canceling, will have to file claims to receive their payments. They must show they did not use more than 10 Prime benefits during their subscription period.

Amazon will notify these customers when to file their claims, which they will have 180 days to submit after the automatic payments are disbursed. Claims processing is anticipated to take place in 2026.

In addition to the financial penalties, Amazon has agreed to implement more transparent practices regarding customer consent and subscription cancellation processes. This includes ensuring a clear option for customers to decline Prime service at the point of checkout and simplifying the cancellation method to match how users signed up for the service.

Mark Blafkin, Amazon’s senior manager, stated, “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.”