Amazon to pay $2.5 billion settlement for 'tricking' millions of users into signing up for Prime — details here

Amazon has agreed to pay $2.5 billion in fines and reimbursements to Prime subscribers after the Federal Trade Commission (FTC) alleged that the company had used deceptive tactics to generate subscriptions.

Around 35 million Prime customers will be eligible for reimbursement from a $1.5 billion fund, whereas the company will pay the FTC the remaining $1 billion as a fine.

Despite the allegations and fines, Amazon did not admit to any wrongdoing as part of the settlement, Reuters reported.

Customer payouts and eligibility

Customers eligible for the refund must have signed up for Prime between June 23, 2019 and June 23, 2025 by offering trials on its website using “deceptive” pitches such as "Get FREE Same-Day Delivery." The FTC argued that Amazon had failed to clearly disclose to customers that selecting that option would enroll them in Prime and eventually result in monthly subscription charges.

Additionally, the customers who did not use more than three Prime benefits, such as Prime Video, in the year after they signed up will automatically receive a $51 payout, according to court documents.

The settlement also allows customers to submit claims for payment if they experienced difficulties canceling their Prime membership or even failed to do so during that time, Reuters said.

Changes to Prime enrollment and cancellation

As part of the settlement, Amazon has agreed to implement several changes to make its subscription process more transparent. This includes creating a "clear and conspicuous" button to allow customers to decline a Prime subscription and making its cancellation process easier.

Amazon has also agreed to more clearly disclose the terms of a subscription during the enrollment process and to pay for an independent, third-party supervisor to monitor compliance.

Amazon Prime, introduced in 2005 for $79 per year has steadily increased its subscription fees with the most recent hike to $139 in 2022. The founder, Jeff Bezos, marketed the platform by once saying that he wanted to make Prime so compelling that consumers would feel they are "being irresponsible" if they are not members.

The programme helped drive $23.9 billion in subscription revenue in the first half of 2025, making it a key growth driver for the company.

The probe against Amazon's subscription practices began during President Donald Trump's first term, though the case was originally filed during Joe Biden's presidency, Reuters reported.