Prime offers free shipping, access to streaming movies and more. Hundreds of millions of people around the world subscribe to the service, which costs $139 a year in the US, or $14.99 a month, and £95 a year in the UK.
The FTC had targeted Amazon practices, such as pop-ups during checkout that repeatedly suggested customers sign-up for Prime, collecting billing information without fully disclosing terms or making it clear how to decline the service.
They also took aim at the company’s offer of one-month Prime trials, which did not clearly state that customers would be automatically enrolled at the end of the month.
The agency said such designs violated consumer protection laws.
“The evidence showed that Amazon 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 Ferguson said.
“Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again.”
An estimated 35 million people in the US who were affected by such practices between June 2019 and June 2025 could be eligible for refunds, worth up to $51, according to the FTC.
Amazon agreed to automatically refund customers who used Prime benefits fewer than three times over a year after enrolling. Those who used it fewer than 10 times over the course of a year are eligible but must file a claim.
As part of the settlement, Amazon will no longer be able to feature buttons saying “No, I don’t want free shipping” and must create an easy way to cancel Prime.
