Overview
- Under the agreement, $1.5 billion will reimburse affected Prime subscribers and $1 billion will be paid to the U.S. Treasury as a penalty.
- The FTC alleged Amazon used confusing interfaces and a deliberately cumbersome cancellation flow nicknamed “Iliad” to secure enrollments without clear consent.
- Amazon must add a clear option to decline Prime, present price and auto‑renewal upfront before charging, and simplify cancellation under a protocol lasting up to ten years.
- The settlement was reached on the third day of jury testimony in Seattle after a court found Prime falls under consumer‑protection laws and that Amazon obtained billing data before full disclosure.
- Amazon admitted no wrongdoing, while FTC Chair Andrew N. Ferguson called the outcome a major win grounded in the ROSCA framework and part of broader U.S. actions targeting tech subscription practices.