Compliance Radar · Consumer protection
FTC secures $2.5 billion from Amazon over Prime sign-up and cancellation dark patterns
The FTC's $2.5 billion Amazon settlement sets the bar for sign-up and cancel flows.
- Status
- Final. The click-to-cancel rule was vacated July 8, 2025.
- Takes effect
- On court entry (W.D. Wash.)
- Announced
- Sep 25, 2025
- Type
- enforcement
What changed
Amazon agreed to a $1 billion penalty and $1.5 billion in refunds over confusing Prime sign-ups and hard cancellation. The order requires a clear decline button and easy cancellation.
Who it affects
Sites selling subscriptions, trials or auto-renewing plans to US consumers.
What to do
- Add a plain decline option to every upsell.
- Show price and renewal terms before payment.
- Make canceling as easy as signing up.
Sources
- FTC: Historic $2.5 billion settlement against Amazon (opens in a new tab)
- Eighth Circuit: Custom Communications v. FTC (July 8, 2025) (opens in a new tab)
Summary of public sources, not legal advice.