Bota Posted on 2025-09-30 09:43:00

Amazon pays record $2.5 billion fine for consumer fraud

From Kristi Ceta

Amazon pays record $2.5 billion fine for consumer fraud

Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the US federal government, which accused the company of deceiving millions of people into joining its Prime service and then making it difficult for them to unsubscribe.

Under the settlement announced by the Federal Trade Commission, $1.5 billion will be distributed to consumers who were tricked into signing up for the service. This is the largest commercial fine the Commission has ever awarded.

The Prime service offers free shipping, movie streaming and other benefits. It costs €120 per year in the US and €107 per year in the UK, and is used by hundreds of millions of people around the world.

The commission alleged that Amazon used illegal online shopping methods to encourage users to sign up for Prime, often without clearly explaining the terms or giving them the opportunity to decline the offer.

One-month free periods were also problematic, as customers were not clearly warned that membership would be automatically charged after the trial ended. According to the Commission, these practices violate consumer protection laws.

It is estimated that about 35 million Americans affected by these practices between June 2019 and June 2025 could receive refunds. The amount could be up to $51 per person.

Amazon has agreed to automatically refund Prime members who have used Prime less than three times in the year after signing up. Those who have used it less than ten times will be able to request a refund through a form.

 

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