The Trump Administration has imposed a record-breaking $2.5 billion settlement on Amazon, marking the largest penalty of its kind in U.S. history. The Federal Trade Commission (FTC) accused the e-commerce giant of enrolling users in Prime subscriptions without explicit consent and creating obstacles for cancellation.
The FTC alleged that Amazon used “sophisticated subscription traps” to lure customers into Prime memberships, including deceptive enrollment tactics and opaque cancellation procedures. Over 35 million consumers are expected to qualify for refunds, with eligible individuals receiving up to $51 automatically or through claims.
The settlement includes a $1 billion civil penalty and $1.5 billion in consumer reimbursements. Amazon executives Neil Lindsay and Jamil Ghani were also named in the case, as the FTC charged the company with violating the Restore Online Shoppers’ Confidence Act (ROSCA).
Customers who signed up for Prime between June 2019 and June 2025, or attempted to cancel without success, may receive refunds. Automatic payments will begin within 90 days of the court order, with additional claims processed later. A dedicated settlement website is set to launch, though details remain pending.
FTC Chairman Andrew N. Ferguson hailed the ruling as a landmark victory for consumers, stating it would “put billions back into Americans’ pockets” and prevent future deceptive practices. The case highlights growing scrutiny of corporate tactics in digital subscriptions.