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Amazon has agreed to pay $2.5 billion to settle a major case with the Federal Trade Commission (FTC), marking the largest civil penalty in the agency's history related to consumer subscription practices.

The FTC accused the tech giant of misleading millions of customers into signing up for its Prime membership, then making it too hard for them to cancel.

According to CBS News, the settlement includes $1.5 billion in refunds to nearly 35 million affected customers and a $1 billion fine for breaking federal rules.

The FTC said Amazon used tricky designs during checkout to push customers into signing up for Prime without their full understanding. In many cases, buyers thought they were just completing a purchase but were actually enrolled in a paid subscription.

Canceling Prime was no easier. The FTC found that Amazon made the process so hard that internally it was jokingly called the "Iliad," referencing the ancient Greek tale known for its long, difficult journey.

Users had to click through several confusing pages just to end their membership.

"The evidence showed that Amazon used subscription traps," said FTC Chairman Andrew N. Ferguson. "We're putting billions back into Americans' pockets and making sure Amazon never does this again."

Amazon Customers Could Get $51 Refund After FTC Settlement

Customers who signed up through Amazon's "Single Page Checkout" between June 23, 2019, and June 23, 2025 may qualify for a refund of up to $51, AP News reported. The company is required to send out payments within 90 days.

Amazon also has to create a claims process for others who were affected in different ways, such as struggling to cancel.

As part of the deal, Amazon must now:

• Show a clear "accept" or "decline" button for Prime offers during checkout.
• Clearly explain all costs before charging customers.
• Make cancellation simple, fast, and free of tricks.

Amazon said it already made many of these changes years ago. A company spokesperson stated, "We work hard to make signing up or canceling Prime easy and to provide value to millions of loyal members."

Over 200 million people subscribe, paying $139 a year or $14.99 a month for perks like fast shipping and video streaming. In 2025 alone, Amazon earned over $12 billion from subscriptions.

This case is part of a broader FTC push to protect customers from confusing and unfair online practices. A similar rule — the "click-to-cancel" regulation — is also being debated in court.

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