Overview
- The order includes a $1 billion civil penalty and $1.5 billion for consumer refunds, which the FTC says is the largest civil penalty for a rule violation it has obtained.
- The Commission approved the stipulated order 3–0 and filed it in the Western District of Washington, where it awaits the district judge’s entry before taking effect.
- Refunds will roll out in two phases: automatic payments within 90 days of the order for low‑use customers, followed by a claims process for additional eligible customers.
- Eligibility generally covers U.S. users enrolled between June 23, 2019, and June 23, 2025 via specified ‘challenged’ flows or those who tried unsuccessfully to cancel, with individual payouts capped at $51.
- Amazon must add a clear decline option, disclose all terms up front, simplify cancellation, and submit to third‑party monitoring, while the company denies wrongdoing and says it has already made improvements.