News
September 26, 2025
Amazon will refund $1.5B to 35M customers allegedly duped into paying for Prime
Former FTC chair Khan not happy her legal wrath ended in settlement worth just 14% of Amazon's quarterly net Amazon has settled the Federal Trade Commission's case against it for making it too hard to quit Prime, and while it naturally didn't admit to any wrongdoing, it's still going to pay out one of the largest settlements in FTC history to make the matter go away. ...
**Amazon to Refund $1.5 Billion to Millions Over Prime Enrollment Practices**
Amazon will issue a staggering $1.5 billion in refunds to an estimated 35 million customers who the Federal Trade Commission (FTC) alleges were unfairly pressured into signing up for, and paying for, Amazon Prime memberships. The settlement resolves a contentious legal battle between the e-commerce giant and the FTC, which accused Amazon of employing deceptive tactics that made it difficult for consumers to cancel their Prime subscriptions.
The FTC's complaint centered on what it described as manipulative design practices, often referred to as "dark patterns," that allegedly steered consumers towards Prime enrollment without their explicit consent or full awareness. These tactics, the FTC argued, included making the cancellation process overly complex and confusing, requiring multiple steps and hidden options that discouraged users from terminating their memberships.
While Amazon has agreed to the massive payout, it has not admitted to any wrongdoing. The company maintains that its Prime enrollment and cancellation processes are fair and transparent. However, the hefty settlement suggests that Amazon is willing to resolve the issue to avoid further legal battles and reputational damage.
The settlement marks one of the largest in FTC history, highlighting the agency's commitment to protecting consumers from deceptive online practices. The case was initiated during the tenure of former FTC Chair Lina Khan, who has been a vocal critic of Amazon's business practices. Despite securing this significant settlement, Khan reportedly expressed dissatisfaction that the final agreement represents only about 14% of Amazon's quarterly net earnings. This sentiment underscores the ongoing debate about the effectiveness of financial penalties in deterring large corporations from engaging in potentially harmful practices.
The refund process is expected to begin in the coming months, and the FTC will likely provide details on how eligible customers can claim their share of the settlement. Consumers who believe they were unfairly charged for Amazon Prime memberships should monitor the FTC's website and news outlets for further information. This case serves as a reminder to consumers to carefully review the terms and conditions of online subscriptions and to be vigilant about potential "dark patterns" designed to manipulate their choices.
Amazon will issue a staggering $1.5 billion in refunds to an estimated 35 million customers who the Federal Trade Commission (FTC) alleges were unfairly pressured into signing up for, and paying for, Amazon Prime memberships. The settlement resolves a contentious legal battle between the e-commerce giant and the FTC, which accused Amazon of employing deceptive tactics that made it difficult for consumers to cancel their Prime subscriptions.
The FTC's complaint centered on what it described as manipulative design practices, often referred to as "dark patterns," that allegedly steered consumers towards Prime enrollment without their explicit consent or full awareness. These tactics, the FTC argued, included making the cancellation process overly complex and confusing, requiring multiple steps and hidden options that discouraged users from terminating their memberships.
While Amazon has agreed to the massive payout, it has not admitted to any wrongdoing. The company maintains that its Prime enrollment and cancellation processes are fair and transparent. However, the hefty settlement suggests that Amazon is willing to resolve the issue to avoid further legal battles and reputational damage.
The settlement marks one of the largest in FTC history, highlighting the agency's commitment to protecting consumers from deceptive online practices. The case was initiated during the tenure of former FTC Chair Lina Khan, who has been a vocal critic of Amazon's business practices. Despite securing this significant settlement, Khan reportedly expressed dissatisfaction that the final agreement represents only about 14% of Amazon's quarterly net earnings. This sentiment underscores the ongoing debate about the effectiveness of financial penalties in deterring large corporations from engaging in potentially harmful practices.
The refund process is expected to begin in the coming months, and the FTC will likely provide details on how eligible customers can claim their share of the settlement. Consumers who believe they were unfairly charged for Amazon Prime memberships should monitor the FTC's website and news outlets for further information. This case serves as a reminder to consumers to carefully review the terms and conditions of online subscriptions and to be vigilant about potential "dark patterns" designed to manipulate their choices.
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Technology