Amazon reaches $2.5 billion settlement with FTC over 'deceptive' Prime program

Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that it duped users into paying for Prime memberships.

The lawsuit, filed by the FTC in June 2023 under the Biden administration, claimed that Amazon deceived tens of millions of customers into signing up for its Prime subscription program and sabotaged their attempts to cancel it.

The surprise settlement comes as Amazon and the FTC were just three days into the trial in a Seattle federal court. Opening arguments took place Tuesday.

The FTC said the agreement prohibits Amazon from misrepresenting the terms of Prime, requires the company to make clear and conspicuous disclosures about the terms of the program during enrollment, and it requires Amazon to get consumers’ express consent before charging them for a subscription. Amazon must also provide an easy way for users to cancel their subscription, the agency added.

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