Overview

• Amazon will pay a $1 billion civil penalty and $1.5 billion in consumer refunds to resolve FTC claims over deceptive Prime enrollment and hard-to-exit cancellations.
• The FTC estimates roughly 35 million consumers are eligible for redress, with individual payouts capped at about $51 for valid claims.
• Required changes include a clear decline button, conspicuous disclosure of price, auto-renewal and billing terms, and cancellation using the same method used to sign up.
• Internal Amazon documents cited by the FTC referenced the multi-step cancellation flow as “Iliad” and described subscription tactics as a “shady world” and “an unspoken cancer.”
• Amazon did not admit wrongdoing; the stipulated order, approved 3–0 by the Commission, was filed in the Western District of Washington as the Seattle trial got underway and includes third-party compliance monitoring.