Amazon Resolves Prime Program Lawsuit With USD 2.5 Billion Settlement

Amazon will pay USD 2.5 billion to settle FTC claims that it misled customers into Prime memberships, the agency announced ON September 25, 2025.

The settlement, reached three days into a Seattle federal court trial, includes a USD 1 billion civil penalty and USD 1.5 billion in refunds to around 35 million affected customers. Eligible users will receive up to USD 51 within 90 days. Amazon did not admit wrongdoing but agreed to maintain clear enrollment and cancellation processes, obtain consumers’ express consent, and avoid misrepresenting Prime terms. Two executives, including Prime head Jamil Ghani, are barred from unlawful conduct. FTC Chairman Andrew Ferguson described the penalty as a “monumental win.” The settlement lets Amazon avoid a jury trial that could have imposed larger damages.