Amazon Will Cough Up $2.5 Billion for 'Tricking' People Into Amazon Prime Subscriptions

Core Points - The Federal Trade Commission (FTC) lawsuit against Amazon has led to a $2.5 billion settlement for misleading customers regarding Amazon Prime subscriptions [1][2] - The settlement includes $1.5 billion for a fund to repay eligible subscribers and a $1 billion civil penalty [2] - Amazon will implement clearer options for declining Prime during checkout and simplify the cancellation process as part of the settlement [2] FTC Lawsuit Background - The FTC accused Amazon of using "dark patterns" to manipulate customers into Prime subscriptions and complicating the cancellation process [5][6] - The lawsuit claimed violations of Section 5 of the FTC Act and the Restore Online Shoppers' Confidence Act [5] Settlement Details - The settlement applies to customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025, particularly those who used "challenged enrollment flows" [7] - Specific enrollment pages were identified, and claimants must not have used more than 10 Prime benefits in any 12-month period to qualify for payouts [7] Payout Process - Eligible customers who signed up through challenged processes and used three or fewer Prime benefits will receive automatic payments within 90 days [8] - Other eligible customers must file claims, and Amazon is required to notify them within 30 days of automatic payments [8] Payment Amounts - Payouts to eligible claimants will be capped at $51, which may be reduced based on the number of Prime benefits used [9]