


Amazon agreed to pay $2.5 billion to settle claims that it tricked tens of millions of people into signing up for its Prime membership program, and then made it hard for customers to cancel when they wanted out, the Federal Trade Commission said on Thursday.
The settlement came days into a jury trial that began in Seattle this week over the issue, which stemmed from a lawsuit filed by the F.T.C. in 2023. The lawsuit cut to the heart of how Amazon defines itself as a champion for the hundreds of millions of consumers who regularly use its online shopping service.
The settlement includes $1 billion in penalties and $1.5 billion in payouts to customers, who could get $51 each if they qualify. The agency said it is one of the largest settlements in its history.
Amazon admitted to no wrongdoing in agreeing to settle, the agency said.
An estimated 200 million people in the United States use Prime to shop on Amazon. Subscriptions, primarily Prime, brought in more than $44 billion last year, but its value to Amazon goes far beyond the monthly fees. Prime members are the company’s best customers: they buy more things, and buy more frequently, than people who are not signed up for the service.
This is a developing story. Check back for updates.