Amazon Settles FTC Lawsuit for $2.5 Billion Over Prime Enrollment

The Federal Trade Commission reached a $2.5 billion settlement with Amazon.com, Inc. to resolve a 2023 antitrust lawsuit. The agency alleged the company used deceptive design tricks, known as dark patterns, to enroll millions of U.S. consumers in Prime without informed consent and intentionally complicated the cancellation process, violating the FTC Act and the Restore Online Shoppers’ Confidence Act.

The settlement includes a $1 billion civil penalty and a $1.5 billion consumer refund fund. While Amazon denied any wrongdoing and stated it has always followed the law, internal documents revealed employees described the company's subscription-driving tactics as a shady world. As part of the agreement, the company must simplify its cancellation process, provide a clear button for users to decline Prime, and transparently disclose membership costs.

Eligible U.S. customers who signed up via challenged enrollment flows or failed to cancel between June 23, 2019, and June 23, 2025, may receive up to $51. While some users received automatic refunds in late 2025, a second phase allows those who used between three and ten Prime benefits annually to file a claim. The deadline to submit these claims via the official settlement website is July 27, 2026. Approved payments are expected to be distributed by September 2026 through check, PayPal, or Venmo.