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Amazon's $2.5B Prime Scam Settlement
25 Dec
Summary
- Amazon fined $2.5 billion for deceptive Prime subscription practices.
- $1.5 billion to refund eligible subscribers, rest as penalty.
- Amazon must now offer easy cancellation options for Prime.

Amazon has agreed to a substantial $2.5 billion settlement with the U.S. Federal Trade Commission concerning its practices for enrolling customers into Amazon Prime between June 23, 2019, and June 23, 2025. The FTC accused the online retail giant of employing "dark patterns"—manipulative user-interface designs—to trick consumers into unwanted auto-renewing subscriptions. This settlement aims to rectify those deceptive tactics that made it difficult for customers to cancel their memberships.
The financial penalty includes $1.5 billion designated for refunds to eligible subscribers, with the remainder serving as a civil penalty. Amazon is now mandated to provide a clear and simple option for customers to decline Prime, ensuring the cancellation process is as easy as the sign-up. The company has begun distributing payments to eligible individuals, with automatic payments expected to conclude by December 24, 2025.




