Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC), resolving allegations that it misled millions of customers into signing up for its Prime membership through manipulative website design tricks, often referred to as “dark patterns.”

The FTC, which announced the deal on Thursday, described it as one of its largest victories against deceptive online practices. The agreement includes $1 billion in civil penalties and $1.5 billion in refunds for affected Prime users. According to Reuters, as many as 35 million people could be eligible for compensation.

Court filings reveal that customers who signed up for Prime between June 2019 and June 2025 via certain promotions, but rarely used the benefits, will automatically receive $51 refunds. Others who faced obstacles while attempting to cancel will be able to submit claims.

While substantial on paper, the payout is unlikely to dent Amazon’s finances. The company generates roughly $2.5 billion in revenue every 33 hours, and its stock price barely moved following the news.

In its response, Amazon said the settlement “allows it to move forward and focus on customers,” insisting that its sign-up and cancellation processes are already clear. The company added that the agreement primarily codifies changes already in place rather than imposing new obligations.

As part of the settlement, Amazon must simplify its Prime interface — including offering a prominent opt-out button, clearer terms at sign-up, and streamlined cancellation options. An independent monitor will ensure compliance.

The FTC, however, portrayed a more deliberate scheme. Regulators accused Amazon of intentionally designing its website between 2017 and 2022 to push users toward Prime while making cancellation difficult.

Internal emails revealed during the probe suggested that executives were aware of the misleading design, with one employee calling subscription tactics “a bit of a shady world” and another describing them as “an unspoken cancer.”

FTC Chair Andrew Ferguson hailed the settlement as “a record-breaking, monumental win” for consumers frustrated with hard-to-cancel subscriptions.

Still, former chair Lina Khan — who filed the case in 2023 — criticized the $2.5 billion figure as insignificant compared to Amazon’s vast revenues.

Despite the penalty, analysts believe Prime remains largely unaffected. Launched in 2005, the program has grown into a $139-a-year powerhouse, generating nearly $24 billion in subscription revenue in the first half of 2025 alone.

“Amazon may have made Prime easier to cancel, but the program remains deeply entrenched in most American households,” eMarketer analyst Zak Stambor told Reuters.

The settlement may mark a symbolic victory for regulators, but for Amazon, Prime’s grip on millions of subscribers appears as strong as ever.