FTC secures $2.5 billion settlement over Amazon Prime enrollment and cancellation practices

Summary

In 2026, the U.S. Federal Trade Commission (FTC) announced a historic $2.5 billion settlement with Amazon over allegations that the company enrolled tens of millions of consumers into Amazon Prime subscriptions without their knowledge or consent and made it difficult to cancel those subscriptions. Under the settlement, Amazon agreed to pay $1.5 billion in consumer refunds, a $1 billion civil penalty, and to stop the unlawful enrollment and cancellation practices identified by the FTC. Amazon denied wrongdoing as part of the settlement. The FTC also established a refund program for eligible U.S. Prime customers.