Amazon will pay $2.5 billion to resolve a U.S. Federal Trade Commission case that alleged the company used deceptive design to enroll customers in Prime and made cancellations difficult.
The agency disclosed the deal in a press release on September 25, 2025, and filed a stipulated final order the same day in the U.S. District Court for the Western District of Washington. The FTC said the order includes a $1 billion civil penalty and $1.5 billion in consumer refunds.
The case stems from a 2023 complaint that Amazon violated the FTC Act and the Restore Online Shoppers’ Confidence Act. The court’s order notes a September 17 partial summary judgment finding that Prime is subject to ROSCA and that Amazon collected billing information before disclosing all material terms.
How the order changes Prime sign-ups and cancellations
Under the settlement, Amazon must add a clear decline button, provide conspicuous disclosures of price and renewal terms during enrolment, and make cancellation simple using the same method customers used to sign up. An independent supervisor will monitor compliance during redress distribution.
Who is eligible for refunds, and how much
The FTC says $1.5 billion will go to consumers. Several outlets report automatic $51 refunds for some Prime customers and a claims process for others, with an eligibility window from June 23, 2019 to June 23, 2025.
The FTC’s release confirms the redress amount but does not list per-user payouts. We mark the $51 figure as Unverified until the official claims instructions publish.
Amazon’s response and broader context
Amazon said the company and its executives “have always followed the law,” and that the settlement allows it to move forward while continuing to make sign-up and cancellation clear and simple. Newsrooms framed the payout as a test case for online subscription design and dark patterns.
After the September 17 partial summary judgment, the parties submitted the stipulated final order. The district court docket lists the filing on September 25, 2025, under case number 2:23-cv-00932-JHC before Judge John H. Chun.
What comes next
The FTC says stipulated final orders carry the force of law once approved and signed. The agency will oversee refunds and monitor compliance with the enrollment and cancellation changes. Consumers can watch for instructions on the FTC refunds hub when available.
