E-commerce giant Amazon has agreed to pay $2.5 billion After a legal settlement with the Federal Trade Commission (FTC). The FTC accused the company of using deceptive methods to sign up millions of users to the Amazon Prime subscription service without consent and intentionally creating a complex cancellation process. This measure seeks to compensate about 35 million affected consumers in the United States.
The agreement, announced in September, seeks to compensate customers and force the company to modify its business practices.
Amazon issued a statement on September 25 denying any wrongdoing. The company defended its transparency policy, saying: “We work hard to make it clear and easy for customers to sign up or cancel, and to deliver great value to our millions of premium members around the world.”
The US authority ruled that Amazon violated the Federal Trade Commission (FTC) and the Restoring Online Shoppers’ Confidence Act (ROSCA). The investigation concluded that the company Intentionally designed interfaces that led consumers to unwittingly sign up for Prime.
The FTC also determined that the company created an “overly difficult” cancellation process, intended to reduce subscription service cancellations. The court order, which the committee unanimously approved, imposes three main obligations:
According to the FTC, eligible customers can receive an automatic refund of up to $51 for the subscription fee paid. To be considered, a client must meet three specific conditions:
The FTC has made it clear that eligible customers don’t need to do anything at the initial stage. Amazon Refunds will be issued automatically by December 25, 2025.
The second phase of claims will open starting in 2026 for users who meet the requirements and do not receive automatic payment. In this case, an independent administrator will send detailed instructions and customers will have 180 days to complete the order form.
The FTC also issued a warning: The agency is not contacting consumers by phone or email about this case. If anyone contacts you on behalf of the Committee to promise you a refund, It’s a scam. Fraud can be reported at ReportFraud.ftc.gov.
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