Amazon fined $2.5B for using deceptive methods to sign up consumers for Prime

Scope and Structure of the Settlement

• Settlement is $2.5B total: $1B civil penalty to the government and $1.5B reserved for consumer refunds.
• Plan described in the thread: automatic payouts up to $51 for some eligible Prime members, plus a claims website (within 30 days) where others can claim up to $51.
• If money remains, Amazon will repeatedly broaden automatic payouts (still capped at $51/person) until the fund is exhausted.
• Some dislike this “everyone gets $51” structure, preferring fewer, larger payouts; others note this case is not a class action.
• Several commenters argue the amount is small relative to Amazon’s ~$60B annual profit, likening it to a minor fine or traffic ticket, though others note losing ~2–3% of profits is non-trivial.

Prime Dark Patterns: Enrollment and Cancellation

• Many describe highly manipulative UX: large, bright “Continue with Prime” or “fast, free shipping” buttons, with tiny grey “no thanks / continue without Prime” links.
• Several note wording that implies you’ll pay for shipping if you refuse Prime, even when free non-Prime shipping is available.
• Users report accidental signups by confusing “trial” vs “paid” options and vague “Continue” buttons.
• Cancellation previously involved “Project Iliad”: multiple pages, misleading buttons like “End Membership” that didn’t actually end it, “Remind Me Later” flows that often didn’t send reminders, and at least six clicks.
• Some say they were misled into thinking they’d canceled when they had not, paying for months. Others insist canceling has recently become straightforward and comparable to typical “are you sure?” flows.

Comparisons to Other Companies and Broader Dark Patterns

• Commenters compare Amazon favorably and unfavorably to gyms, telecoms, Adobe, LegalShield, Duolingo, and Google, all cited for hard-to-cancel or deceptive subscription UX.
• There is mention of a now-struck-down FTC “click-to-cancel” rule and existing state rules (e.g., California annual renewal notices).
• Some view the real win as forcing Amazon to cease deceptive enrollment and cancellation practices, hoping it chills similar behavior across the industry.

Prime’s Value Proposition and Evolving Experience

• Mixed sentiment: some still “love” Prime for fast shipping and easy returns; others say shipping is often slower, quality lower, and the store full of counterfeits and junk.
• Non-Prime users describe a hostile checkout laced with repeated Prime upsell screens, pushing them further away from Amazon.
• Several have canceled Prime after ads were added to Prime Video, or because they realized free shipping thresholds and alternative retailers (Walmart, Target, specialty sites, eBay) often beat Amazon on total cost.
• Others argue Prime pays for itself via the co-branded credit card’s high cashback and Whole Foods discounts.

Account Access, Renewals, and Consumer Protection

• A few recount being locked out of accounts (phone number / 2FA issues) yet still billed for subscriptions they couldn’t cancel, ultimately resorting to bank charge blocks or card cancellation.
• Complaints about vague billing descriptors and lack of clear renewal emails; some want fines specifically for failing to send renewal notices.
• EU-based commenters note a 14‑day right of withdrawal led to easy Prime refunds there, contrasting with US experiences.

Politics, Branding, and Corporate Culture

• Several discuss the FTC’s press language (“Trump‑Vance FTC”), criticizing personality branding of routine agency actions; others note the case began under the prior administration.
• Former-insider perspectives describe an earlier Amazon culture that prided itself on clear renewal notices and rejecting “gym-style” unused-subscription models, with some blaming later leadership changes and corporate maturity for today’s dark patterns.