Amazon Agrees to Historic $2.5 Billion FTC Settlement Over Prime Membership Practices

Sep 26, 2025 11:27 am CST

Amazon has reached a record $2.5 billion settlement with the Federal Trade Commission, including $1 billion in civil penalties and $1.5 billion in consumer refunds, for allegedly tricking customers into Prime memberships and making cancellations difficult. The settlement, the largest FTC rule violation penalty in history, requires Amazon to maintain transparent subscription practices while providing refunds to over 30 million affected customers.