Amazon to Pay $2.5 Billion Over Prime Subscription “Dark Patterns”

Amazon has agreed to pay a massive $2.5 billion settlement after the U.S. Federal Trade Commission (FTC) accused the retail giant of tricking millions of users into unwanted Prime memberships. The FTC announced the deal on Thursday, calling it one of its most significant victories against “dark patterns” — the manipulative design tactics that nudge consumers into clicking “yes” when they intend to say “no.”

Of the total amount, $1 billion will be collected as penalties, while $1.5 billion will be distributed as refunds to impacted Prime subscribers. According to Reuters, about 35 million people may qualify for payouts. Court documents indicate that users who enrolled in Prime between June 2019 and June 2025 via promotional offers, but rarely used the service, will automatically receive $51 each. Meanwhile, those who tried and failed to cancel during the same period will be eligible to submit reimbursement claims.

Despite the historic fine, the impact on Amazon’s financial strength appears minimal. The company generates around $2.5 billion in revenue every 33 hours, and investors showed little concern, with stock prices largely unchanged following the announcement.

In a statement, Amazon said the settlement “allows it to move forward and focus on customers.” The company added: “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.”

As part of the agreement, Amazon will revamp its Prime interface by introducing clearer opt-out options, easier cancellations, and upfront disclosures of subscription terms. An independent monitor will also oversee compliance. However, Amazon stressed that most of these changes were already in place, noting that the settlement “largely requires it to maintain changes that are already in place, rather than make new ones.”

The FTC’s lawsuit painted a different picture, alleging that between 2017 and 2022, Amazon intentionally designed confusing flows to push customers into Prime. Internal emails revealed during the investigation suggested employees recognized the manipulative tactics, with one describing the process as “a bit of a shady world” and another warning that deceptive sign-ups were “an unspoken cancer.”

FTC Chair Andrew Ferguson hailed the deal as “a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.” The settlement is the second-largest consumer restitution in the FTC’s history and part of a broader crackdown on big tech’s manipulative practices.

Not everyone was impressed. Former FTC Chair Lina Khan, who initially filed the case, criticized the outcome, writing on X that the settlement was merely “a drop in the bucket for Amazon and, no doubt, a big relief for the executives who knowingly harmed their customers.”

Still, analysts believe Amazon Prime remains untouchable. Since its 2005 launch at $79 annually, Prime has grown into a $139-per-year powerhouse, raking in nearly $24 billion in subscription revenue in just the first half of 2025.

As eMarketer analyst Zak Stambor told Reuters: “Amazon may have made Prime easier to cancel, but the program remains deeply entrenched in most American households.”

In the end, Amazon may have written a check with plenty of zeros, but its grip on subscribers appears as strong as ever.