The FTC has recently declared a $2.5 billion settlement with Amazon over what it referred to as “deceptive” practices concerning Prime subscriptions. Here are the specifics.
### Amazon Prime Settlement Expected to Aid 35 Million Impacted Consumers
The US Federal Trade Commission (FTC) revealed in 2023 that it was probing Amazon for “enrolling consumers in Amazon Prime without their approval and obstructing their efforts to cancel.”
Two years later, the FTC and Amazon have reached a “landmark” $2.5 billion settlement as a punishment for Amazon “intentionally misleading” numerous consumers.
From the press release:
The landmark financial judgment included in the settlement marks only the third ROSCA case in which the FTC has secured a civil penalty. It encompasses:
– a **$1 billion** civil penalty, which is the largest ever in a case involving an FTC rule breach;
– **$1.5 billion** in consumer compensation, ensuring complete relief for the estimated 35 million consumers affected by unsolicited Prime enrollment or postponed cancellation. This is the second-highest restitution granted through FTC action.
According to the FTC, Amazon “developed confusing and misleading user interfaces to persuade consumers to sign up for Prime without their awareness.” The company also “established a complicated and challenging process for consumers trying to cancel their Prime subscription.”
These claims were reportedly substantiated by internal Amazon communications:
Amazon documents uncovered before the trial indicated that Amazon executives and employees openly discussed these illegal enrollment and cancellation problems, with remarks like “subscription driving is a bit of a shady world” and leading consumers to unwanted subscriptions is “an unspoken cancer.”
Currently, there are no specifics on how impacted users can claim a share of the $1.5 billion consumer compensation. However, that information should be provided by Amazon in the near future.
Were you enrolled in Amazon Prime without your consent, or did you struggle to cancel? Share your experiences in the comments.
