After a two-year fight with the Federal Trade Commission (FTC), Amazon has agreed to a whopping $2.5 billion settlement. In court documents obtained by Reuters, the company was accused of duping consumers into signing up for its Prime subscription service as well as making it hard to cancel after registering.

Reuters reports that the payouts for the $2.5 billion break down into $1 billion as a civil penalty, plus $1.5 billion going in payouts to roughly 35 million Amazon Prime subscribers who were caught up in the haphazard technology.

​It’s the largest fine the FTC has ever handed out for a rule violation and the second-largest customer payout the agency’s ever secured.

​According to the lawsuit, the FTC claims Amazon designed its sign-up process to nudge, or even trick, shoppers into getting Prime, sometimes without consumers realizing it. And if someone tried to peace out and cancel? Amazon reportedly set up digital mazes and roadblocks—turning what should be a quick and easy process into a time-consuming nightmare.

The practice is known as a “subscription trap,” and a lot of customers complained that getting rid of Prime was a headache they never signed up for.

If you tried to sign up for or cancel Amazon Prime between June 23, 2019, and June 23, 2025, you may be entitled to compensation. Eligible customers can receive up to $51, depending on how much they paid in Prime fees. Most of these refunds will happen automatically for those who tried to cancel or sign up during certain “challenged” parts of Amazon’s site. For some, a claim form will be needed.

As part of the deal, Amazon will not admit any wrongdoing; however, simplifying how people sign up for and cancel Prime moving forward is required.

Andrew Ferguson, FTC Chair, called the deal "a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel."