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Amazon will pay a $2.5 billion settlement to the FTC, including $1.5 billion in refunds to 35 million customers over deceptive Prime subscription practices.
Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds to an estimated 35 million customers that were “harmed by their deceptive Prime enrollment practices”.
Amazon will be paying $2.5 billion settlement with the Federal Trade Commission (FTC) while ending a two-year dispute over allegations that the company had tricked consumers into signing up for its Prime subscription service and then made it hard to cancel.
CNN cited the agreement as stating that Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds to an estimated 35 million customers that were “harmed by their deceptive Prime enrollment practices”.
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The case is related to the lawsuit filed in 2023 under the Biden administration over the company’s cancellation policies.
“Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel,” said FTC Chairman Andrew Ferguson.
“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription,” he added.
In a statement, Amazon spokesperson Mark Blafkin said that the company has “always followed the law and this settlement allows us to move forward and focus on innovating for customers”.
“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world,” he said.
The company, however, did not admit to any wrongdoing, and said it has made the changes outlined by the FCC, CNN reported.
According to CNN, the Amazon users can no longer have a “No, I don’t want Free Shipping” button.
The FTC said the company needs to include “clear and conspicuous disclosures” about the terms of Prime during enrollment process and have “easy ways” to cancel the programme.
Former FTC chair Lina Khan, who ran the agency when the lawsuit was filed, said in a social media post on Thursday that the settlement just a few days into Amazon’s jury trial rescued the company “from likely being found liable for having violated the law,” allowing it to “pay its way out.”
Washington D.C., United States of America (USA)
September 26, 2025, 01:49 IST
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