The Trump Administration has imposed a record-breaking $2.5 billion settlement on Amazon.com, Inc., marking the largest penalty of its kind in history. The Federal Trade Commission (FTC) accused the e-commerce giant of enrolling customers in Prime subscriptions without consent and creating obstacles to cancellation.

The FTC alleged that Amazon used “sophisticated subscription traps” to mislead users into signing up for Prime, with 35 million customers potentially eligible for refunds. The settlement includes a $1 billion civil penalty and $1.5 billion in customer reimbursements. Affected individuals who subscribed or attempted to cancel between June 2019 and June 2025 may receive up to $51.

Amazon executives Neil Lindsay and Jamil Ghani were also named in the case, as the FTC charged the company with violating consumer protection laws. The ruling mandates changes to enrollment and cancellation processes.

Refunds will be distributed automatically within 90 days, with additional claims accepted for up to 180 days after notification. Details about the process will be shared via Amazon’s website and app.

The FTC emphasized that the settlement aims to penalize deceptive practices and return funds to consumers. The decision highlights a broader crackdown on corporate accountability in subscription-based services.