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FTC Reversed Its Request to Delay Amazon Prime Trial, Then Settled the Case

The FTC reversed its request to delay its Amazon Prime case in March 2025, but the matter ended in a settlement rather than a trial. Here’s what the FTC alleged and how consumer redress changed in 2026.
From TheFinanceBase Team4 min to read
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The FTC briefly asked to postpone its planned Amazon Prime trial in March 2025, then withdrew that request the same day: agency lawyer Jonathan Cohen said the commission was “fully prepared to litigate.” The case did not go to the September 2025 trial. It was resolved through a settlement addressing the FTC’s allegations, and the agency expanded the settlement’s consumer-redress terms in September 2026.

Why did the FTC reverse its request to delay the trial?

On March 12, 2025, FTC lawyer Jonathan Cohen asked U.S. District Judge John Chun to postpone the trial, then scheduled for September, and relax deadlines. He cited budget and staffing shortfalls. Later that day, Cohen sent the judge a letter correcting his comments: “I want to clarify comments I made today: I was wrong,” he wrote. “The commission does not have resource constraints and we are fully prepared to litigate this case.” The Associated Press reported the reversal on March 13, 2025. Associated Press report.

FTC Chair Andrew Ferguson separately said “the attorney was wrong” and that he would commit the resources needed for the case. The reversal meant the agency was no longer asking to delay the trial; it did not decide whether Amazon had violated the law or establish that the FTC would ultimately prove its claims.

What did the FTC allege Amazon did?

The FTC’s June 2023 complaint alleged that Amazon used manipulative, coercive, or deceptive interface designs—often called “dark patterns”—to enroll consumers in automatically renewing Prime subscriptions without their consent, and made cancellation difficult. The agency also alleged that company leaders delayed or rejected changes that would have made cancellation easier. These were allegations, not findings of liability. FTC complaint announcement.

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According to the FTC, some purchase flows made the option to buy without Prime harder to find, while some transaction buttons did not clearly communicate that clicking would also begin a recurring subscription. The complaint alleged violations of Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). Then-FTC Chair Lina M. Khan said Amazon “tricked and trapped people into recurring subscriptions without their consent.” That statement expressed the agency’s position, not a court’s conclusion.

What had the court decided before the case settled?

In May 2024, the district court denied Amazon’s motions to dismiss. The court said it could not determine as a matter of law that the challenged disclosures were clear and conspicuous to a reasonable consumer. That was a pleading-stage decision allowing claims to proceed—not a trial verdict, a final ruling on the merits, or a finding that Amazon was liable. FTC case page.

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How did the case end, and what did the settlement require?

The case did not proceed to the September 2025 trial discussed when the FTC reversed its delay request. The FTC’s case page lists a stipulated order dated September 25, 2025, and the agency announced a settlement resolving the allegations. The settlement required Amazon to pay a $1 billion civil penalty and provide up to $1.5 billion in consumer redress. The FTC estimated that 35 million consumers were affected by unwanted enrollment or deferred cancellation. These are figures attributed to the FTC’s 2025 announcement; the 35 million figure is an agency estimate, not a court finding of individual harm. FTC settlement announcement.

Under the order, Amazon had to provide a clear, conspicuous way to decline Prime, disclose material terms—including price, when and how often a customer would be charged, automatic renewal, and cancellation procedures—and offer an easy cancellation method available through the same method used to sign up. The FTC described the $1 billion penalty as the largest ever in a case involving an FTC rule violation and the restitution award as its second-highest.

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What changed in the Prime refund program in 2026?

In September 2026, the FTC announced a revised order expanding automatic consumer redress. The agency said more consumers would qualify, the maximum total payment would rise from $51 to $200, and future payments would be made automatically without a claim or additional paperwork. Amazon administers the redress program. FTC redress update.

  • Payments already issued: The FTC reported that more than $845 million in redress payments had been issued as of its September 2026 update.
  • Newly eligible consumers: Consumers who used between 11 and 20 Prime benefits during a one-year period were to become eligible for automatic refunds beginning October 1, 2026.
  • Possible additional payment: Some consumers who accepted earlier payments could receive a later supplemental payment of up to $149, subject to the revised order’s threshold conditions.

The FTC warned that it was not contacting consumers about refunds. It also said no one from Amazon would ask for money to obtain a refund.

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What the trial-readiness reversal does—and does not—tell consumers

The March 2025 episode was about the FTC’s ability and readiness to litigate, not a ruling on the merits of its claims. The ultimate resolution was a settlement, not a trial verdict. The 2026 update concerns how consumer redress is distributed under the revised order; it does not turn the original allegations into findings after trial.

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