In a major jolt to e-commerce giant Amazon, the company has agreed to pay $2.5 billion to settle claims that it misled millions of customers into unwanted Prime subscriptions. The Federal Trade Commission (FTC) called the settlement one of its biggest victories yet against ‘dark patterns’—design tactics that nudge users into clicking ‘yes’ when they intended to click ‘no.’
The agreement provides clear advantages for customers. According to court documents, individuals who subscribed to Prime from June 2019 to June 2025 via specific promotional deals and scarcely utilized the benefits will receive $51 automatically. Additionally, those who attempted but were unsuccessful in canceling Prime during this timeframe can file claims for a refund.
The agreement includes both penalties and reimbursements. Approximately $1 billion will be paid to the FTC as fines, and $1.5 billion will be reserved for Prime members affected by the situation. As reported by Reuters, about 35 million individuals might be eligible for compensation.
Nevertheless, the penalty is barely noticeable for Amazon. The online retail behemoth earns around $2.5 billion in revenue every 33 hours. Investors appeared unfazed, as Amazon's stock price showed little change after this announcement.
In the settlement agreement, Amazon has committed to revamping its Prime buttons. This includes providing a prominent, clear option to opt out of the subscription, simplifying the cancellation process, offering more transparent disclosure of terms during sign-up, and appointing an independent supervisor to ensure compliance with these rules.
Amazon announced that the agreement enables it to progress and concentrate on its customers. The company further stated: "We put in a tremendous effort to ensure that the process for customers to either enroll in or terminate their Prime membership is straightforward, while also providing significant value to our numerous loyal Prime members globally."
