SEATTLE (AP) — Amazon has reached a historic $2.5 billion settlement with the Federal Trade Commission, which said the online retail giant tricked customers into signing up for its Prime memberships and made it difficult for them to cancel after doing so.
The Seattle company will pay $1 billion in civil penalties — the largest fine in the agency’s history — and $1.5 billion will be paid back to consumers who were unintentionally enrolled in Prime, or were deterred from canceling their subscriptions, the agency said Thursday.
The surprise settlement comes just days after the trial began in U.S. District Court in Seattle this week. At the heart of the case is the Restore Online Shoppers’ Confidence Act, a 2010 law designed to ensure that people know what they’re being charged for online.
FTC officials said Amazon had its back against the wall and the consumer refund amount exceeded even the agency’s expert projections.
“I think it just took a few days for them to see that they were going to lose. And they came to us and they paid out,” said Chris Mufarrige, director of the Bureau of Consumer Protection, on the settlement negotiations.
Amazon, however, said it was confident it would win case but that it chose to resolve it quickly instead of going through potentially years of trial and appeals. The company admitted no wrongdoing in the case, which was first filed two years ago.
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers," said spokesman Mark Blafkin in a statement. "We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.”
Certain Prime customers who are eligible for automatic refunds of up to $51 include those who may have signed up for a membership via the company’s “Single Page Checkout,” among other links, between June 23, 2019, to June 23, 2025. Those customers will be reimbursed within 90 days of the settlement order.
Amazon is also on the hook to set up a claims process for more than 30 million customers who may have been affected by the other issues at the heart of the FTC case, including its cancellation process.
Amazon Prime provides subscribers with perks that include faster shipping, video streaming and discounts at Whole Foods for a fee of $139 annually, or $14.99 a month.
It’s a key and growing part of Amazon’s business, with more than 200 million members. In its latest financial report, the company reported in July that it booked more than $12 billion in net revenue for subscription services, a 12% increase from the same period last year. That figure includes annual and monthly fees associated with Prime memberships, as well as other subscription services such as its music and e-books platforms.
The FTC said Amazon deliberately made it difficult for customers to purchase an item without also subscribing to Prime. In some cases, consumers were presented with a button to complete their transactions — which did not clearly state it would also enroll them in Prime, the agency said.
Getting out of a subscription was often too complicated, and Amazon leadership slowed or rejected changes that would have made canceling easier, according to an FTC complaint.
Internally, Amazon called the process “Iliad,” a reference to the ancient Greek poem about the lengthy siege of Troy during the Trojan war. The process requires the customer to affirm on three pages their desire to cancel membership.
The FTC began looking into Amazon’s Prime subscription practices in 2021 during the first Trump administration, but the lawsuit was filed in 2023 under former FTC Chair Lina Khan, an antitrust expert who had been appointed by Biden.
The agency filed the case months before it submitted an antitrust lawsuit against the retail and technology company, accusing it of having monopolistic control over online markets.
As part of the settlement terms, Amazon is prohibited from misrepresenting the terms of the subscriptions. It must fully disclose the costs to be incurred and obtain the customer’s express consent for the charge. For example, it must have a clear option for customers to accept or decline a Prime subscription being offered during a purchase, avoiding potentially confusing language such as: “No thanks, I don’t want free shipping.”
Automatic renewals for memberships must be clearly marked and the company is also required to use a cancellation process, which “must not be difficult, costly, confusing or time consuming,” according to the settlement.
Amazon said the settlement doesn't require it to make any additional changes — only to maintain its current sign-up and cancellation process that it had put in place in recent years.
FILE - An Amazon Prime driver makes a delivery outside an apartment building in Pittsburgh, March 10, 2025. (AP Photo/Gene J. Puskar, File)
SURIN, Thailand (AP) — Fighting raged Saturday morning along the border of Thailand and Cambodia, even after U.S. President Donald Trump, acting as a mediator, declared that he had won agreement from both countries for a new ceasefire.
Thai officials said they did not agree to a ceasefire. Cambodia has not commented directly on Trump’s claim, but its defense ministry said Thai jets carried out airstrikes Saturday morning.
Thai Foreign Minister Sihasak Phuangketkeow said Saturday that some of Trump's remarks didn't “reflect an accurate understanding of the situation.”
He said Trump’s characterization of a land mine explosion that wounded Thai soldiers as a “roadside accident” was inaccurate, and did not reflect Thailand's position that it was a deliberate act of aggression.
Sihasak said that Trump’s willingness to credit what may be “information from sources that deliberately distorted the facts” instead of believing Thailand hurt the feelings of the Thai people “because we consider ourselves — we are proud, in fact — to be the oldest treaty ally of the United States in the region.”
The latest large-scale fighting was set off by a skirmish on Dec. 7 that wounded two Thai soldiers and derailed a ceasefire promoted by Trump that ended five days of earlier combat in July over longstanding territorial disputes.
The July ceasefire was brokered by Malaysia and pushed through by pressure from Trump, who threatened to withhold trade privileges unless Thailand and Cambodia agreed. It was formalized in more detail in October at a regional meeting in Malaysia that Trump attended.
More than two dozen people on both sides of the border have officially been reported killed in this past week’s fighting, while more than half a million have been displaced.
The Thai military acknowledged 15 of its troops died during the fighting, and estimated earlier this week that there have been 165 fatalities among Cambodian soldiers. Cambodia has not announced military casualties, but has said at least 11 civilians have been killed and more than six dozen wounded.
Trump, after speaking to Thai Prime Minister Anutin Charnvirakul and Cambodian Prime Minister Hun Manet, announced on Friday an agreement to restart the ceasefire.
“They have agreed to CEASE all shooting effective this evening, and go back to the original Peace Accord made with me, and them, with the help of the Great Prime Minister of Malaysia, Anwar Ibrahim,” Trump wrote in his Truth Social post.
Trump’s claim came after midnight in Bangkok. Thai Prime Minister Anutin had, after his call with Trump, said he had explained Thailand’s reasons for fighting and said peace would depend on Cambodia ceasing its attacks first.
The Thai foreign ministry later explicitly disputed Trump’s claim that a ceasefire had been reached. Anutin's busy day on Friday included dissolving Parliament, so new elections could be held early next year.
Cambodian Prime Minister Hun Manet, in comments posted early Saturday morning, also made no mention of a ceasefire.
Hun Manet said he held phone conversations on Friday night with Trump, and a night earlier with Malaysia’s Prime Minister Anwar Ibrahim, and thanked both “for their continuous efforts to achieve a long-lasting peace between Cambodia and Thailand.”
“Cambodia is ready to cooperate in any way that is needed," Hun Manet wrote.
Anwar later posted on social media that he was urging the two sides to implement a ceasefire on Saturday night. Cambodia's prime minister, also posting online, endorsed the initiative, which included having Malaysia and the United States help monitor it. However, Thai Prime Minister Anutin denied that his country was even in negotiations over the proposal.
Thailand has been carrying out airstrikes on what it says are strictly military targets, while Cambodia has been firing thousands of medium-range BM-21 rockets that have caused havoc but relatively few casualties.
BM-21 rocket launchers can fire up to 40 rockets at a time with a range of 30-40 kilometers (19-25 miles). These rockets cannot be precisely targeted and have landed largely in areas from where most people have already been evacuated.
However, the Thai army announced Saturday that BM-21 rockets had hit a civilian area in Sisaket province, seriously injuring two civilians who had heard warning sirens and had been running toward a bunker for safety.
Thailand's navy was also reported by both sides' militaries to have joined the fighting on Saturday morning, with a warship in the Gulf of Thailand shelling Cambodia's southwestern province of Koh Kong. Each side said the other opened fire first.
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Peck reported from Bangkok. Sopheng Cheang in Serei Saophoan, Cambodia, and Matthew Lee in Washington contributed to this report.
A man sits in a tent as he takes refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing home following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
An evacuee cooks soup as she takes refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing home following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
An evacuee tastes soup as she takes refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing from home following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
Evacuees cook food as they take refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing homes following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
Children raise their hands while receiving donation from charity as they take refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing homes following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
Evacuees wait to receive donation from local charity as they take refuge in Banteay Menchey provincial town, Cambodia, Saturday, Dec. 13, 2025, after fleeing homes following fighting between Thailand and Cambodia. (AP Photo/Heng Sinith)
Village security volunteers and resident run into shelter while the blasts sounded too close in Buriram province, Thailand, Friday, Dec. 12, 2025, following renewed border conflict between Thailand and Cambodia. (AP Photo/Sakchai Lalit)
