Amazon has reached a significant $2.5 billion settlement with the United States Federal Trade Commission (FTC) in response to allegations that it misled customers into subscribing to its Prime Video service and made it challenging to cancel those subscriptions. As part of the agreement, $1 billion will be designated for fines to the FTC, while the remaining $1.5 billion will be allocated to reimburse affected customers, although Amazon has not admitted to any wrongdoing.
The FTC’s antitrust lawsuit, initiated in 2023, accused Amazon of deceiving millions of customers into enrolling in Prime subscriptions and creating barriers to canceling them. According to the FTC, approximately 35 million Prime customers in the U.S. will be eligible for compensation from the settlement, specifically targeting those who began their subscriptions between June 23, 2019, and June 23, 2025.
Court documents indicate that each affected customer will automatically receive $51. The FTC outlines specific eligibility criteria, including customers who used their Prime benefits three times or less within a 12-month span. These payments are expected to be processed by a third-party claims administrator by December 24, 2025.
Customers who may not automatically receive a payment but still believe they are eligible will be able to submit claims from January 23, 2026, until July 23, 2026. This compensation program aims to address grievances related to problems encountered by customers who enrolled through promotional offers, such as free trials or day delivery services, and faced difficulties canceling.
FTC Chair Andrew Ferguson heralded the agreement as a landmark victory for consumers who have grown weary of deceptive subscription practices. While the settlement is seen as beneficial for the public, observers note that it represents a minor financial setback for Amazon, considering the company’s substantial sales revenue.
In addition to the financial settlement, Amazon has committed to improving transparency in its subscription process. The company will implement clearer cancellation options and make disclosure of subscription terms more straightforward during enrollment. Furthermore, Amazon will engage an independent supervisor to oversee adherence to these new compliance measures, reflecting their intention to enhance customer service and trust.
This settlement marks a crucial step toward holding large corporations accountable for their business practices, ensuring that consumers’ rights are safeguarded and that they can navigate subscription services more easily and transparently.