Amazon will pay $2.5 billion in fines and reimbursements to settle allegations from U.S. regulators that it misled customers to boost Prime subscriptions. The settlement includes a $1.5 billion fund for approximately 35 million eligible Prime subscribers, according to the U.S. Federal Trade Commission (FTC).

As part of the agreement, Amazon will pay $1 billion in fines to the FTC. The company did not admit to any wrongdoing. Following the announcement, Amazon's shares remained relatively stable.

Customers who signed up for Prime between June 23, 2019, and June 23, 2025, through offers deemed deceptive by the FTC, and who did not utilize more than three Prime benefits, such as Prime Video, within the first year will automatically receive a payout of $51. Additionally, customers who attempted to cancel their Prime memberships but were unsuccessful during this period can submit claims for reimbursement.

In a statement, Amazon emphasized that the settlement allows the company to focus on its customers. "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," the company stated.

As part of the settlement, Amazon has agreed to implement a more visible option for customers to decline Prime subscriptions and to simplify the cancellation process. The company will also provide clearer disclosures regarding subscription terms during the enrollment process and will fund an independent third-party supervisor to ensure compliance.

The FTC announced the settlement shortly after the trial began in Seattle federal court, where it argued that Amazon sought to enroll customers regardless of their desire for the service. The FTC's investigation revealed that Amazon employees discussed the challenges of subscription enrollment, with comments indicating that leading consumers to unwanted subscriptions was a significant issue.

Amazon founder Jeff Bezos previously stated his goal was to make Prime so appealing that consumers would feel "irresponsible" if they did not subscribe. Launched in 2005 at $79 per year, Prime's subscription fee has increased over the years, reaching $139 in 2022. The program generated $23.9 billion in subscription revenue in the first half of 2025, making it a crucial growth driver for the company.

The FTC's investigation began during Donald Trump's presidency and continued under Joe Biden. This settlement marks the second-largest restitution amount in an FTC action, reflecting the agency's ongoing efforts to regulate technology companies.