FTC Settles With Amazon Over Enrollment And Cancellation Processes For Prime Memberships

On September 25, 2025, the Federal Trade Commission announced it had reached a settlement with Amazon.com, Inc. and two company executives, resolving allegations that the company's enrollment and cancellation processes for Amazon Prime subscription memberships violated Section 5(a) of the Federal Trade Commission Act (FTC Act) and the Restore Online Shoppers' Confidence Act (ROSCA).

Previously, on September 17, 2025, the District Court for the Western District of Washington ruled on the parties' cross-motions for summary judgment, denying Defendants' motion and granting the FTC's motion in part. Amazon had maintained that Prime was not a "negative option" subject to ROSCA's terms, because consumers actively enrolled in Prime by clicking a sign-up button. However, the Court held that ROSCA regulated Prime, because Prime customers were automatically charged until they affirmatively canceled, and Prime trial memberships were automatically converted into paid