BUSINESS

Amazon to pay $2.5 billion to settle FTC allegations it duped customers into enrolling in Prime

Amazon will pay a record-breaking $2.5 billion settlement to the FTC to resolve allegations of deceptive Prime membership practices. $1 billion is a civil penalty, and $1.5 billion will compensate consumers who were unknowingly enrolled or struggled to cancel. The FTC accused Amazon of violating the Restore Online Shoppers' Confidence Act by making it difficult to avoid Prime during checkout and to cancel subscriptions. Amazon denies wrongdoing but didn't comment. The settlement impacts Prime members enrolled via single-page checkout between June 2019 and June 2025.

Reviewed by JQJO team

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