Overview

• Amazon will pay a $1 billion civil penalty and $1.5 billion in refunds covering roughly 35 million customers, with eligible users projected to receive about $51.
• The agreement was reached three days into a Seattle jury trial and was filed in the U.S. District Court for the Western District of Washington after a 3-0 FTC vote.
• Amazon must add a clear option to decline Prime, remove prompts like “No, I don’t want Free Shipping,” disclose all key terms at enrollment, and allow cancellation using the same method as sign-up.
• Two executives, Jamil Ghani and Neil Lindsay, are barred from similar unlawful conduct, and an independent supervisor will oversee compliance and the refund distribution process.
• Amazon did not admit wrongdoing and said the settlement lets it move forward while maintaining it provides clear enrollment and cancellation choices.