Amazon has agreed to a $2.5 billion settlement following allegations by the Federal Trade Commission (FTC) that it used misleading tactics to increase Prime subscriptions. Of the total, $1.5 billion will be set aside to reimburse approximately 35 million Prime users, while $1 billion will be paid as a fine to the FTC. Though the company denies any wrongdoing, it will proceed with the settlement.
Eligible refunds apply to users who enrolled in Prime between June 23, 2019, and June 23, 2025, through trial offers that allegedly lacked clear disclosures—such as “Get FREE Same-Day Delivery”—which automatically triggered a subscription. Users who used fewer than three Prime benefits within a year of signing up will receive an automatic $51 payout. Others may submit claims if they struggled to cancel or couldn’t cancel their memberships.
Amazon will now make subscription terms more transparent, add a clear option to decline Prime, and simplify the cancellation process. The company will also appoint an independent monitor to oversee compliance. Prime generated $23.9 billion in subscription revenue in the first half of 2025.
