Amazon to Pay $1.5 Billion to Qualified Prime Subscribers in Settlement
The Federal Trade Commission (FTC) targeted Amazon for its practices related to Amazon Prime subscriptions. The FTC argued that while Amazon made it easy for customers to subscribe, it was much harder to cancel, using manipulative dark patterns to retain subscribers.
Amazon did not admit any wrongdoing but agreed to a $2.5 billion settlement with the FTC. Of this amount, $1 billion will go to the government, and $1.5 billion will be allocated as consumer relief through refunds.
Compensation Details
- Affected customers will receive up to $51 in compensation.
- Refunds are expected to be issued by December 25, 2025.
Who Qualifies for the Refund?
Consumers qualify if they signed up for Prime between June 23, 2019, and June 23, 2025, using one of the challenged enrollment flows, such as the shipping options page during checkout. Those who attempted to cancel during this period but were unable to also qualify.
“Although Amazon made it easy for customers to sign up with its subscription service, it did not make it so easy to cancel, stating that the company made use of manipulative ‘dark patterns’.”
This settlement requires Amazon to improve its subscription cancellation processes to prevent similar issues in the future.
Summary: Amazon settles FTC allegations for $2.5 billion due to manipulative Prime subscription practices, with $1.5 billion designated for customer refunds.