Amazon to Pay $2.5 Billion in FTC Settlement Over Prime Subscription Practices

Amazon has agreed to a landmark $2.5 billion settlement with the Federal Trade Commission, resolving allegations of deceptive practices related to its Prime subscription service. The tech giant will pay a $1 billion civil penalty—the largest ever for an FTC violation—and $1.5 billion in customer refunds.

Court documents reveal eligible consumers will receive approximately $51 each. "Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime," said FTC Chair Andrew Ferguson. The settlement concludes a two-year investigation, though Amazon admits no wrongdoing.

While the penalty represents a fraction of Amazon's $2 trillion market valuation, the case underscores growing regulatory scrutiny of Big Tech's consumer practices. The refund mechanism could temporarily influence discretionary spending patterns, including potential cryptocurrency purchases among affected consumers.