Overview

• The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to nearly 35 million consumers.
• Regulators alleged Amazon used manipulative interfaces to steer users into Prime and made cancellations cumbersome, citing the multi-step “Iliad” flow.
• The FTC voted 3–0 to approve the order and filed it in the Western District of Washington on September 25, with court approval still required.
• Amazon must add a clear “Decline Prime” button, disclose all material terms upfront, and ensure cancellation is as simple as sign-up, under independent monitoring.
• The case cites ROSCA and FTC Act violations, names senior executives, and notes Amazon denies wrongdoing while pointing to prior design changes.