Amazon packages on a porch in Amarillo. © Brianna Maestas / Amarillo Globe-News / USA TODAY NETWORK / USA TODAY NETWORK via Imagn Images
(New York, NY) – Amazon has agreed to a $2.5 billion settlement over allegations that they tricked people into signing up for their “Prime” subscription service. The Prime program offers benefits like free shipping, access to their streaming content and special deals. The FTC previously filed a lawsuit against the program saying the company was deceptive in both their sign-up and cancellation processes.
Scam-azon Claims
Under the Biden administration in 2023, the FTC filed a lawsuit for “manipulative” and “coercive” user interface. The argument from the government was focused on the user interface and web design that convinced consumers to sign up for the program. Amazon denies any wrongdoing as part of the settlement, but recognizes the settlement helps move the company forward. Amazon will pay $1 billion in fines and another $1.5 billion will be used to reimburse customers, with the individual claim limit capped at $51.
Will Prime Rates Go Up?
The rates for Amazon Prime membership currently cost nearly $15 monthly or $139 annually. The last time Amazon raised their rates was February 2022 when the annual membership went up by twenty dollars. Amazon first introduced Prime for customers in 2005. Revenues from prime subscription rates alone helped Amazon rake in $44 billion last year. The e-commerce giant has not indicated whether or not they will raise rates in the wake of this settlement.
Today the @FTC secured a historic $2.5 billion settlement from Amazon for illegally enrolling millions of Americans into Amazon Prime without consent. The settlement requires Amazon to pay $1.5 billion to provide relief to all 35 million affected customers and to pay a record…
— Andrew Ferguson (@AFergusonFTC) September 25, 2025
Do I Qualify for a Refund?
To qualify, customers must have signed up for Prime between June 23, 2019 and June 23, 2025. Amazon is issuing the refunds in two waves. The first group receiving refunds will be automatically paid will be those who signed up through one of the methods the government argued as deceptive. The second group will have to actually file a claim through Amazon and get approved. The stipulations include not using more than 10 Prime benefits within a 12-month period and a previous attempt at cancelling membership. Forms will be sent out to those eligible customers after the automatic payout period.
Colossal FTC Settlement
Amazon was penalized with the largest possible billion dollar fine from the FTC. Former chair under the Biden administration, Lina Khan – who originally brought the suit against Amazon, put out a statement. Khan called the settlement a “drop in the bucket” for Amazon, and wanted to see the case play out in court. Meanwhile, Amazon still faces another lawsuit from the FTC alleging the company is operating as a monopoly.
