Amazon to pay $2.5 billion to settle FTC Prime enrollment allegations
FTC says the deal includes $1 billion in civil penalties and $1.5 billion in restitution to consumers who were enrolled or deterred from canceling Prime memberships
Amazon on Sept. 25, 2025, agreed to a $2.5 billion settlement with the Federal Trade Commission over allegations that the company duped customers into signing up for Prime memberships and made it difficult to cancel. Under the deal, the retailer will pay $1 billion in civil penalties—the largest FTC fine in the agency's history—and $1.5 billion in restitution to consumers who were unintentionally enrolled or deterred from canceling, the FTC said. A trial in Seattle started this week after the case was filed two years ago.
The FTC said the practices misled customers into Prime sign-ups and created obstacles to cancellation. Amazon did not immediately respond to requests for comment, the Associated Press reported.
Amazon said it does not admit wrongdoing as part of the settlement.
The settlement is the FTC's largest financial penalty against a single company and is intended to provide restitution to affected consumers. The agency noted that the payment structure seeks to remedy harms caused by the enrollment practices.
The case underscores the FTC's ongoing scrutiny of subscription practices by major online platforms and the agency's willingness to pursue large-scale settlements to protect consumers.