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Amazon Fined $2.5B for Deceptive Prime Subscription Tactics
17 Nov
Summary
- Amazon hit with historic $2.5B FTC settlement over deceptive Prime sign-ups
- FTC accused Amazon of using "dark patterns" to trick customers into Prime
- Amazon now legally required to make Prime cancellation as easy as joining
On November 17, 2025, the Federal Trade Commission (FTC) announced a historic $2.5 billion settlement with Amazon over the company's deceptive subscription tactics. The FTC accused Amazon of using manipulative "dark patterns" to nudge customers into enrolling in automatically renewing Prime memberships and then making it overly difficult to cancel.
As part of the settlement, Amazon must pay a massive $1.5 billion to refund eligible Prime subscribers, with the remaining $1 billion serving as a civil penalty. The tech giant is now legally required to provide clear, obvious options for declining Prime and ensure the cancellation process is as straightforward as the sign-up.
While Amazon denies any wrongdoing, the FTC's complaint states the company violated the FTC Act and the Restore Online Shoppers' Confidence Act through its deceptive user interface designs. The settlement covers customers who enrolled in Prime between June 2019 and June 2025 using "challenged enrollment flows" or who were unable to successfully cancel their memberships.
Eligible customers who used less than 10 Prime benefits in a 12-month period will receive automatic refunds from Amazon within 90 days. Others will need to file claims, with the maximum payout capped at $51 per person.
