Amazon agrees $2.5bn settlement over claims it tricked Prime users

The online retail giant has agreed to pay $1.5bn (£1.1bn) to customers that had unintentionally signed up to the subscription service or had been deterred from cancelling. It will also pay $1bn (£750m) in civil penalties.

The Federal Trade Commission (FTC) had accused Amazon of making it deliberately difficult for customers to purchase products online without creating a Prime subscription.

Amazon said it had “always followed the law” and the settlement would allow the firm to “move forward”.

Around 35 million Prime users that signed up between June 23, 2019, and June 23, 2025, through certain offers, could be eligible for a refund worth up to $51 (£38).

Customers who used Prime benefits fewer than three times a year will be automatically compensated, while those who accessed the benefits fewer than 10 times must file a claim.

As part of the agreement, Amazon must fully disclose the costs and obtain the user’s express consent for the charge, with a clear option for customers to accept or decline a Prime subscription.

The retailer will no longer be able to display ‘No, I don’t want free shipping’ buttons at checkout and must create an easy way for customers to cancel the service.

Amazon spokesperson Mark Blafkin said the company worked “incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership”.

“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” he said.

The retailer said the settlement does not require it to make any further changes, only to maintain its current sign-up and cancellation process that it had put in place.