Amazon reaches $2.5 billion settlement with FTC over ‘deceptive’ Prime program

• Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that it duped users into paying for Prime memberships, the regulatory agency announced Thursday.
• Amazon will pay a $1 billion civil penalty to the FTC and will refund $1.5 billion to an estimated 35 million customers, the agency said.
• The FTC had accused Amazon of using “deceptive” sign-up and cancellation practices in its Prime program. 

Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that the company duped users into paying for Prime memberships, the regulatory agency announced Thursday.

The surprise settlement comes as Amazon and the FTC were just three days into the trial in a Seattle federal court. Opening arguments in the case occurred Tuesday, but the settlement allows Amazon to avoid having a jury at the trial return a verdict with potentially larger damages than the settlement with the FTC.

Source: https://www.cnbc.com/2025/09/25/amazon-ftc-prime-settlement.html