United States of America: Western District Court of Washington issued USD 2.5 billion settlement order against Amazon over deceptive subscription practices

On 25 September 2025, the Western District Court of Washington approved a USD 2.5 billion settlement against Amazon. The settlement resolved Federal Trade Commission's (FTC) claims on violation of consumer protection laws through deceptive Amazon Prime subscription practices from 2019-2025. Amazon must pay USD 1 billion in civil penalties, and establish a USD 1.5 billion consumer fund for affected subscribers. The settlement requires Amazon to clearly disclose subscription terms before collecting billing information, obtain express consent before charging, provide simple cancellation mechanisms, and redesign signup flows to remove deceptive elements. Eligible consumers who enrolled through problematic flows and used minimal Prime benefits receive automatic payouts up to USD 51, while others can file claims for unintentional enrollment or failed cancellation attempts. A court-appointed supervisor oversees the 16-month consumer redress program. Amazon faces 10 years of compliance monitoring including mandatory reporting, recordkeeping, and FTC oversight through depositions and investigations.