Amazon settles Prime allegations with FTC for $2.5 billion2025-09-25 15:45 by DanielaTags: Amazon, Prime, FTC
Amazon has agreed to pay a historic $2.5 billion to settle a landmark case over its Prime membership program. The U.S. government had alleged the company's web designs manipulated tens of millions of people into paying for subscriptions that were purposefully hard to cancel. Amazon, without admitting wrongdoing, will pay $1 billion in civil penalties to the government and another $1.5 billion in payments to affected consumers, according to court documents. The company, in its statement, said it and its executives "have always followed the law and this settlement allows us to move forward and focus on innovating for customers." Millions of people who paid for Amazon Prime between mid-2019 and mid-2025 are expected to automatically receive reimbursements of up to $51, while other Amazon users will be able to submit claims for refunds. Their eligibility will depend on how many Prime perks those shoppers used besides free shipping. Amazon will explain the matter on its website and will make other changes to how Prime subscription options are displayed to shoppers. The FTC, which regulates competition, brought the lawsuit in 2023 zeroing in on Prime, which last year helped Amazon take in more than $44 billion in subscription revenue. People who pay for Prime are known to shop more frequently and spend more; Amazon last disclosed its Prime subscribers' count at more than 200 million people in 2021. Read more -here-
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