Amazon To Pay $2.5B In FTC Settlement Over ‘Deceptive’ Prime Tactics
Amazon to pay $2.5B in FTC settlement over ‘deceptive’ Prime tactics has become one of the biggest regulatory actions against the tech giant. The agreement follows claims that Amazon tricked users into unwanted Prime subscriptions and made it unnecessarily difficult to cancel.
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$2.5B Settlement To Refund Millions Of Customers
The FTC announced that Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds to nearly 35 million customers. Regulators said these consumers were misled by “deceptive Prime enrollment practices.”
Amazon must also stop its unlawful sign-up and cancellation tactics, ensuring customers can easily decline or cancel their Prime membership.
How Amazon Allegedly Misled Users
The original lawsuit, filed in June 2023 under the Biden administration, accused Amazon of using dark patterns—confusing and manipulative design tricks—to get customers to subscribe without clear consent.
The FTC also alleged that Amazon built a complicated cancellation process, forcing users through multiple steps before they could end their subscription.
Trial Ends With Major Consumer Win
The settlement arrived just as the FTC and Amazon’s trial was about to begin. Instead of letting a jury decide, Amazon agreed to the multi-billion-dollar payout.
FTC Chairman Andrew N. Ferguson said the evidence showed Amazon “used sophisticated subscription traps” that harmed millions. He emphasized the settlement ensures billions go back into Americans’ pockets while preventing Amazon from repeating these tactics.
What Changes For Amazon Prime Going Forward
As part of the agreement, Amazon must:
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Add a clear “decline” button for Prime sign-ups.
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Remove misleading prompts like “No, I don’t want free shipping.”
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Simplify the cancellation process for customers.
These new requirements are designed to make subscriptions transparent, optional, and easy to cancel.
Why This Settlement Matters
This $2.5B settlement highlights the growing scrutiny of Big Tech’s consumer practices. Regulators are sending a clear message: deceptive design tactics won’t be tolerated.
For Amazon, the ruling could reshape how it markets Prime—a service with more than 200 million members worldwide—and set a precedent for how other companies handle subscriptions.
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