Amazon Settles FTC Antitrust Lawsuit for $2.5 Billion

Amazon.com Inc. agreed to a $2.5 billion settlement with the Federal Trade Commission to resolve a 2023 antitrust lawsuit. The agency alleged the company used dark patterns to mislead consumers into enrolling in Prime subscriptions and intentionally obstructed the cancellation process.

The settlement consists of a $1 billion civic penalty and $1.5 billion allocated for customer refunds. While Amazon denied any wrongdoing and did not admit liability, the company committed to simplifying its membership cancellation process.

Refunds are structured in two phases for U.S. consumers enrolled between June 23, 2019, and June 23, 2025. The first phase provides automatic payments of up to $51 for those who used three or fewer Prime benefits in a 12-month period. A second phase allows users who used between three and ten benefits annually to file a claim for up to $51 if they were unintentionally enrolled or unable to cancel. Eligible claimants must file on the official settlement website by July 27, 2026. Approved claims will be processed within 30 days, with distributions scheduled for September.