Under the settlement, Amazon will automatically refund $51 to customers who signed up through deceptive processes and used Prime only three times or less in a year|Tdorante10|CC BY-SA 4.0

Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission on Thursday, resolving claims it misled customers into signing up for Prime and made cancellation difficult. 

The deal includes $1.5 billion in refunds to subscribers and a $1 billion government fine, one of the largest in US history.

Under the settlement, Amazon will automatically refund $51 to customers who signed up through deceptive processes between June 23, 2019, and June 23, 2025, and used Prime only three times or less a year.

Through the settlement, Amazon avoided a jury trial in Seattle, which risked more negative publicity.

FTC Chair Andrew Ferguson said Amazon used “sophisticated subscription traps.” Critics argue the penalties are small compared to Amazon’s $60 billion profit in 2024.

Amazon said the settlement lets it move forward and focus on innovation.