Amazon Settles FTC Prime Case for $2.5 Billion

Amazon has agreed to pay $2.5 billion to resolve allegations by the Federal Trade Commission regarding deceptive Prime subscription practices. The settlement halts an ongoing jury trial in Seattle, where the e-commerce giant faced potential steeper penalties.

The FTC accused Amazon of employing manipulative design tactics to enroll customers into Prime without clear consent and creating unnecessarily convoluted cancellation processes. Approximately 35 million users were impacted, with three top Amazon executives potentially facing personal liability.

Under the terms, Amazon will pay $1 billion in civil penalties and distribute $1.5 billion in restitution—about $51 per affected user—within 90 days. The company maintains its innocence, stating it has 'always followed the law' while agreeing to settle to 'move forward.'