Amazon to pay $2.5B to settle FTC lawsuit over Prime enrollment and cancellation practices
Amazon agreed to pay $2.5 billion to settle a U.S. government lawsuit — $1 billion in civil penalties and $1.5 billion in consumer redress — after the FTC accused the company of illegally enrolling customers in Prime and making it difficult to cancel. The settlement was announced as jury selection began Sept. 24, 2025, in Seattle before Judge John Chun in a case alleging ROSCA violations that cited internal Amazon labels and a multistep cancellation process nicknamed "Iliad"; Amazon did not admit wrongdoing.
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Amazon agrees to settle U.S. lawsuit that it 'tricked' people into Prime
New information:
- Amazon agreed to pay $1 billion in civil penalties to the U.S. government.
- Amazon agreed to pay $1.5 billion in redress to affected consumers.
- Settlement announced as the trial was just beginning in Seattle before Judge John Chun; Amazon did not admit wrongdoing.
A jury will look at whether Amazon tricked customers into joining Prime — and made it hard to leave
New information:
- FTC sued Amazon alleging more than a decade of illegal practices under the Restore Online Shoppers’ Confidence Act; jury selection began Sep. 24, 2025 in Seattle.
- Prime costs $139/year or $14.99/month; Amazon reports more than 200 million Prime members and over $12 billion in quarterly subscription net revenue tied to services.
- Judge John Chun affirmed that ROSCA applies to Prime and limited certain defenses; the FTC cites Amazon internal labels like 'unspoken cancer' and a cancellation process called 'Iliad' that requires confirmations on three pages.