Amazon.com Inc (NASDAQ:AMZN) will pay $2.5 billion in fines and reimbursements to Prime subscribers to settle the Federal Trade Commission's (FTC) allegations that it duped its customers to generate subscriptions, the FTC announced on Thursday.
About 35 million Prime customers will be eligible for payout from a $1.5 billion fund, according to the FTC.
The company will also pay $1 billion in fines to the FTC but did not admit wrongdoing as part of the settlement.
The settlement is the second-largest restitution amount ever for a FTC action, but relatively small for Amazon, which generates about $2.5 billion in sales every 33 hours, according to Reuters.
Prime customers who signed up for the service between June 23, 2019, and June 23, 2025, through certain offers will automatically receive $51, according to court documents.
The settlement also allows customers to submit claims for payment if they tried to cancel Prime and failed during that time.
As part of the settlement, Amazon has agreed to create a "clear and conspicuous" button to allow customers to decline a Prime subscription, and to make it easier to cancel.
Amazon introduced Prime in 2005, and the subscription service helped the company generate $23.9 billion in subscription revenue in the first half of 2025.
Shares of Amazon closed nearly 1% lower to $218.15 on Thursday.