12:25 PM EDT, 09/25/2025 (MT Newswires) -- (Updates throughout.)

Amazon.com ( AMZN ) agreed to pay $1 billion in civil penalties and $1.5 billion in customer refunds to resolve allegations by the US Federal Trade Commission that it misled customers into signing up for Prime and intentionally made it difficult to cancel.

"The evidence showed that Amazon ( AMZN ) used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription," FTC Chairman Andrew N. Ferguson said.

Under the proposed settlement, Amazon ( AMZN ) must also make "meaningful changes" to its Prime sign-up and cancellation flows, including providing a clear button to decline Prime and creating an easier cancellation process using the same method as sign-up.

The proposed order was filed in the US District Court for the Western District of Washington and was approved unanimously by the Commission. It will take effect once signed by a judge.

Amazon ( AMZN ) did not immediately reply to a request for comment from MT Newswires.

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