Amazon to Pay $1.5 Billion to Eligible Prime Members in FTC Settlement
The Federal Trade Commission (FTC) targeted Amazon over its Prime subscription practices. While Amazon made signing up for Prime simple, the FTC argued that canceling the service was deliberately complicated, using manipulative "dark patterns."
Amazon did not admit any wrongdoing but agreed to a $2.5 billion settlement with the FTC. Of this amount, $1 billion goes to the government, and $1.5 billion will be distributed as consumer relief to affected customers through refunds.
Who Qualifies for Compensation?
- Customers who signed up for Prime between June 23, 2019, and June 23, 2025, through certain "challenged enrollment flows," such as during the checkout shipping options page.
- Those who tried to cancel Prime within this period but were unable to do so.
Qualified customers will receive up to $51 in compensation, with payments expected by December 25, 2025.
“Amazon made it easy for customers to sign up with its subscription service, but it did not make it so easy to cancel, using manipulative ‘dark patterns.’”
This settlement highlights increased regulatory scrutiny over subscription services and user experience designs that may hinder cancellation.
Summary: Amazon will refund eligible Prime subscribers up to $51 each as part of a $1.5 billion FTC consumer relief settlement addressing manipulative subscription practices.
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