The Federal Trade Commission pursued Amazon over its handling of Prime subscriptions, accusing the company of making it simple to enroll but unnecessarily difficult to cancel. According to the FTC, Amazon allegedly relied on manipulative design tactics known as “dark patterns.”
“The FTC claimed that although Amazon made it easy for customers to sign up with its subscription service, it did not make it so easy to cancel.”
While Amazon did not admit to any legal violations, the company agreed to resolve the dispute with a $2.5 billion settlement. From this total, $1 billion will go to the government, and $1.5 billion will be distributed to eligible consumers as refunds.
Customers qualify for compensation if they subscribed to Amazon Prime between June 23, 2019, and June 23, 2025, through one of the “challenged enrollment flows” such as during checkout shipping options—or if they attempted to cancel during that timeframe but couldn’t complete the cancellation.
Amazon will compensate eligible Prime members up to $51 following a $2.5 billion FTC settlement addressing deceptive cancellation practices.