Amazon to pay $1.5 billion to customers in FTC settlement

Amazon accepted a regulation of $ 2.5 billion with the Federal Trade Commission, which brought Amazon to court for allegedly “deceptive” membership registrations, the regulatory agency announced on Thursday. Amazon was accused of having violated both the FTC law and the Restore Online Shoppers’ Confidence Act (Rosca).

Depending on the regulations, Amazon will pay a billion dollars civil penalty and provide $ 1.5 billion in reimbursements to around 35 million customers. If each of these customers received an equal amount, they would be entitled to a reimbursement of $ 42.86.

In its prosecution, the FTC allegedly alleged that Amazon used misleading practices to register customers for its signature membership program. Not only that, but the FTC argued that AMAZON has trapped customers by making excessively difficult to cancel these subscriptions, even by comparing the cancellation process to a Homeric Odyssey.

When the regulations were announced, Amazon was the third day of a trial before a federal court in Seattle. In the end, a jury could have given even more damages or more severe fines. In 2024, Amazon facilitated $ 638 billion in sales, which resulted in net profit of $ 59.2 billion, few facts that will probably not win the sympathy of a jury.

The FTC trial was initially brought by the Biden administration in 2023, but the FTC managers quickly credited the Trump administration for the major regulation.

“Today, Trump-Vance’s FTC has marked history and has obtained a record monumental victory for the millions of Americans who are tired of the deceptive subscriptions that seem impossible to cancel,” said FTC president Andrew N. Ferguson, in a press release. “The evidence has shown that Amazon used sophisticated subscription traps designed to manipulate consumers to register for premium, then made extremely difficult for consumers to end their subscription. Today, we are putting billions of dollars in the pockets of the Americans and ensuring that Amazon was doing it anymore.”

In addition to the $ 2.5 billion regulation, Amazon has also agreed to make specific modifications to its process of registration and cancellation of the main members.

According to the FTC, Amazon has agreed to include “a clear and remarkable button for customers to refuse prime”. In addition, “Amazon can no longer have a button that says:” No, I don’t want free delivery. “”

The company must also create a simple way to cancel the premium subscriptions, which “cannot be difficult, expensive or long and must be available using the same method as consumers are used to registering”. Finally, Amazon agreed to pay a third -party instructor to guarantee compliance with these agreements and the distribution of reimbursement.