Amazon to pay historic $2.5 billion settlement for allegedly tricking customers into signing up for Prime
edition.cnn.com/2025/09/25/tech/amazon-ftc-prime-settlement
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Amazon Pays Historic Fine Over Prime Subscription TacticsAmazon settles for $2.5 billion, including refunds for 35 million customers, ending a two-year FTC lawsuit over deceptive signup practices.
- Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission over misleading Prime enrollment tactics.
- The payment includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected customers.
- The FTC found that Amazon employed complex methods to enroll consumers in Prime and made cancellations difficult.
- Though denying wrongdoing, Amazon has adopted changes such as clearer disclosures and easier cancellation procedures.
A $2.5 billion fine is a drop in the bucket for Amazon and, no doubt, a big relief for the executives who knowingly harmed their customers.— Former FTC chair Lina Khan commented on the settlement just a few days into Amazon's jury trial.
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