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Amazon to Pay $2.5 Billion to Settle FTC Prime Case, Overhaul Sign-Up and Cancellation

The court-filed order resolves the 2023 FTC lawsuit days into a Seattle jury trial.

Overview

  • The settlement includes a $1 billion civil penalty and $1.5 billion in consumer redress for an estimated 35 million people.
  • Amazon must add a clear option to decline Prime, provide conspicuous disclosures, obtain express consent before charging, and make cancellation as simple as enrollment, with an independent supervisor monitoring compliance.
  • Automatic refunds of up to $51 will go to defined customers within 90 days, with a subsequent claims process for others who enrolled or tried to cancel through challenged flows between June 23, 2019, and June 23, 2025.
  • Amazon admitted no wrongdoing; two executives, Jamil Ghani and Neil Lindsay, are barred from unlawful conduct related to the practices at issue.
  • The FTC said the order addresses alleged ROSCA violations and “dark pattern” tactics such as the multi-step “Iliad” cancellation flow; the Commission approved the deal 3-0 and a federal judge signed off.