Amazon Faces $2.5 Billion Settlement Over Prime Subscription Practices
If you’ve ever felt misled into signing up for Amazon Prime or struggled to cancel your membership, you're not alone. The Federal Trade Commission (FTC) has confirmed these difficulties and took action against Amazon in 2023.
Details of the Settlement
Amazon agreed to a $2.5 billion settlement, which includes:
- $1.5 billion to reimburse eligible Prime subscribers
- $1 billion paid as a civil penalty
While Amazon did not admit any wrongdoing, the settlement requires the company to implement clearer subscription options and simplify the cancellation process.
Changes Amazon Must Make
- A "clear and conspicuous" option to decline Prime during checkout
- A more straightforward way to cancel Prime memberships
"Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers," said Mark Blafkin, Amazon senior manager.
"We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world."
FTC's Allegations
The FTC accused Amazon of using "dark patterns" — design tactics that nudge customers toward subscribing to Prime — and then making cancellation unnecessarily difficult.
Consumers eligible for reimbursement should ensure they file claims to receive their portion of the $1.5 billion repayment fund.
Summary: Amazon faces a $2.5 billion settlement over deceptive Prime subscription tactics, prompting clearer subscription choices and easier cancellations for customers.