The US Federal Trade Commission announced on 25 September 2025 that Amazon has agreed to pay $2.5 billion to resolve claims that it enrolled consumers in Amazon Prime without their consent and made the subscription difficult to cancel. According to the FTC, the FTC Amazon settlement comprises a $1 billion civil penalty and $1.5 billion in refunds for consumers.
The FTC filed the case in June 2023 in the US District Court for the Western District of Washington under the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). Its original complaint alleged that Amazon used manipulative interface designs, often called dark patterns, to steer customers into Prime, and a complex cancellation process to deter them from leaving. Two senior executives were also named in the settlement.
What the settlement requires
The FTC describes the civil penalty as the largest ever in a case involving an FTC rule violation, and the $1.5 billion in redress as full relief for an estimated 35 million affected consumers. Under the order, Amazon must:
- provide a clear and conspicuous button for declining Prime, and stop using decline options such as "No, I don't want Free Shipping";
- clearly disclose the cost of Prime, charge dates and frequency, automatic renewal and how to cancel;
- offer an easy way to cancel through the same method consumers used to sign up;
- pay for an independent third-party supervisor to monitor the distribution of redress.
The Commission vote was 3-0. The stipulated final order takes legal effect once the district court judge approves and signs it.
What it means for subscription businesses
The FTC notes that this is only the third ROSCA case in which it has obtained a civil penalty. The FTC Amazon settlement shows that the agency will scrutinise subscription sign-up and cancellation journeys closely, and that individual executives can be named alongside the company. Businesses that sell online subscriptions to US consumers should review consent screens, price and renewal disclosures and the ease of cancellation.
