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Amazon Prime FTC Settlement: $2.5B Refunds
Amazon Prime’s FTC lawsuit resulted in a historic $2.5 billion settlement, and the FTC secured $1 billion in penalties along with $1.5 billion in consumer refunds. This Amazon Prime settlement also addresses deceptive enrollment practices that affected around 35 million customers who will receive up to $51 each, right now.
“Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”
Amazon Prime Settlement Lawsuit and FTC Ruling Explained
“sophisticated subscription traps.”
Amazon Prime FTC Court settlement legal documentation – Source: FTC.gov![]()
Amazon Prime FTC Court settlement legal documentation – Source: FTC.govFerguson had this to say:
“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”
Also Read: Amazon (AMZN) Receives Wall Street Upgrade: $280 Inbound?
Also Read:****Amazon (AMZN) Receives Wall Street Upgrade: $280 Inbound?### Consumer Refunds and Market Impact
The Amazon Prime lawsuit settlement provides automatic refunds for customers who were enrolled between June 2019 and June 2025. This AMZN settlement represents roughly 0.1% of Amazon’s market cap, and shares actually rose after the AMZN FTC lawsuit resolution announcement was made public.
“The company and its executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers.”
Also Read: Amazon Stock: AMZN Falls as New Prime Subscriptions Slow
**Also Read:**Amazon Stock: AMZN Falls as New Prime Subscriptions Slow