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.