Amazon will pay $2.5 billion to settle the FTC’s Prime lawsuit

Amazon has agreed to resolve a Federal Trade Commission lawsuit by paying $2.5 billion.

The settlement includes a $1 billion civil penalty alongside $1.5 billion earmarked for restoring funds to approximately 35 million consumers impacted by misleading subscription tactics. The regulatory agency had accused the e-commerce giant of deploying manipulative user interface designs, known as dark patterns, to enroll shoppers into Prime without explicit consent and intentionally complicating the cancellation pathway.

As part of the agreement, Amazon must overhaul its subscription signup and cancellation flows. The company is required to implement an unambiguous button for rejecting Prime enrollment and streamline the termination process to ensure it is no more difficult than signing up. While Amazon defended its practices and maintained that its leadership adhered to all legal guidelines, the settlement concludes this specific legal dispute, leaving another major FTC antitrust case against the company pending for a future trial.