The FTC accused Amazon of misleading millions of customers into signing up for Prime subscriptions and making the cancellation process intentionally difficult.
The settlement comprises $1 billion in civil penalties and $1.5 billion in redress payments for affected customers.
Under the agreement, Amazon must now provide clear disclosures, obtain express consent for subscriptions, and ensure an easy cancellation process.
Eligible customers, particularly those who signed up via 'Single Page Checkout' between June 2019 and June 2025, will receive payments between November 12, 2025 and December 24, 2025 and the FTC urged recipients to accept the payments within 15 days.