STORY: Around 35 million Amazon Prime customers are set to get money back from Amazon.

That’s after the Federal Trade Commission on Thursday settled with the company over allegations it duped customers to generate subscriptions, and ordered Amazon to cough up $2.5 billion in penalties.

The case stems from the FTC alleging Amazon executives rejected changes for clearer sign-up and cancellation processes from 2017 to 2022.

At trial in a Seattle federal court, the watchdog said it found Amazon documents showing employees discussed enrollment and cancellation practices…

…with comments like “subscription driving is a bit of a shady world”, and leading consumers to unwanted subscriptions is “an unspoken cancer.”

In all, Amazon will pay $1 billion in fines to the regulator, and a $1.5 billion customer payout – the second-largest from an FTC action, according to the agency.

Those who signed up for Prime between June 23, 2019 and June 23, 2025 through certain offers — and who used few Prime benefits afterward – will automatically get $51.

Customers who tried to cancel Prime and failed during that time, can also submit claims for payment.

Amazon also agreed to create a “clear and conspicuous” button to allow customers to decline a Prime subscription.

The settlement – while a win for consumers and the FTC – is relatively painless for Amazon. The e-commerce giant takes in around $2.5 billion in sales every 33 hours.

Amazon introduced Prime in 2005 for $79 per year. Fees have steadily risen since, hitting $139 in 2022.

Analysts say Prime’s appeal is unlikely to be dented by the settlement, with subscription revenue now a key growth driver for the company.