The Federal Trade Commission (FTC) has secured a historic settlement against Amazon.com, Inc., requiring the e-commerce giant to pay $2.5 billion for alleged deceptive subscription practices. The judgment, announced by the Trump administration, marks the largest settlement of its kind in U.S. history.
According to the FTC, Amazon allegedly enrolled millions of consumers in Amazon Prime subscriptions without their consent and made it excessively difficult for users to cancel. The agency accused the company of using “sophisticated subscription traps” to manipulate shoppers into signing up for Prime while obscuring cancellation options.
The settlement includes a $1 billion civil penalty and $1.5 billion in refunds for affected customers, with an estimated 35 million consumers qualifying for compensation. Eligibility applies to those who signed up for Amazon Prime or attempted to cancel between June 23, 2019, and June 23, 2025. Refunds will be issued automatically to some users, with others required to submit claims.
Amazon executives Neil Lindsay and Jamil Ghani were also named in the lawsuit, as the FTC alleged they knowingly facilitated deceptive enrollment practices. The company is now mandated to cease unlawful subscription tactics.
FTC Chairman Andrew N. Ferguson highlighted the settlement as a victory for consumers, stating it would “put billions of dollars back into Americans’ pockets” and prevent future abuses. Refunds will be distributed in stages, with automatic payments issued within 90 days of the court order. Customers who qualify may receive up to $51, depending on their subscription history.
The FTC emphasized that the judgment exceeds the original requested amount, marking a significant legal and financial consequence for Amazon. Details about the claims process will be posted on Amazon’s website and app once available.
