Amazon will pay $2.5 billion in fines and reimbursements following allegations by the Federal Trade Commission (FTC) that the company used misleading tactics to drive Prime subscriptions, Reuters reported. As part of the settlement, Amazon did not admit to any wrongdoing.
Around 35 million Amazon Prime members are eligible for refunds from a $1.5 billion fund. Customers who signed up for Prime between June 23, 2019, and June 23, 2025, often through trial offers such as “Get FREE Same-Day Delivery,” could receive payouts. Those who did not use more than three Prime benefits, including Prime Video, within a year of signing up will automatically receive $51. Other subscribers who experienced difficulties canceling their membership during this period can file claims with the FTC.
The settlement also requires Amazon to make its subscription process more transparent. The company will add a “clear and conspicuous” button to decline Prime subscriptions, simplify the cancellation process, provide clearer disclosure of subscription terms during enrollment, and fund an independent third-party supervisor to ensure compliance.
Launched in 2005 at $79 per year, Amazon Prime has grown into a major revenue driver for the company, generating $23.9 billion in subscription revenue in the first half of 2025 alone. Subscription fees have gradually increased, most recently reaching $139 in 2022.
The FTC investigation into Amazon’s subscription practices began during the Trump administration and was formally filed under President Joe Biden. Prime has become a cornerstone of Amazon’s business, offering services from same-day delivery to streaming content, and founder Jeff Bezos has described it as a membership so valuable that customers would feel “irresponsible” not to join.
Millions of subscribers are now set to benefit from this settlement, marking a significant move toward transparency in subscription services.
(Tamil Craze)
