Amazon Settles FTC Prime Case for $2.5B, Stock Rises on Resolution

Amazon.com, Inc. shares edged higher Friday as investors digested a $2.5 billion settlement with the Federal Trade Commission over Prime membership practices. The e-commerce giant avoided a protracted trial by agreeing to pay $1 billion in civil penalties and $1.5 billion in customer refunds.

Two Amazon executives face conduct restrictions following allegations of deceptive sign-up and cancellation processes. While this case concludes swiftly, regulatory challenges persist—the company prepares for a 2027 antitrust battle with U.S. authorities.

Market reaction remained muted, with AMZN closing up 0.99% at $220.31. Analysts interpreted the modest gain as relief over avoiding unpredictable jury damages, though the settlement ranks among the FTC's largest consumer protection victories.