Amazon has struck a $2.5 billion deal with the U.S. Federal Trade Commission to resolve accusations it bamboozled millions into Prime memberships and buried the exit door, forking over $1 billion in penalties and $1.5 billion in refunds to affected subscribers without owning up to any foul play.

The settlement, inked just days into a Seattle trial, targets practices from June 2019 to June 2025 where checkout buttons hid Prime enrollments and cancellations dragged users through a gauntlet dubbed "Iliad" internally—a nod to Homer's endless epic—across three confirmation screens.

FTC Bureau of Consumer Protection Director Chris Mufarrige chalked the quick fold to Amazon glimpsing defeat: "It just took a few days for them to see that they were going to lose." Roughly 35 million Prime users qualify for automatic $51 payouts if they signed up via flagged offers and skimped on perks afterward.

Amazon, which boasts perks like zippy shipping for its 200 million-plus global members, insisted it always played by the rules and settled to sidestep years of appeals, not revamp its year-old signup and quit processes.

Spokesman Mark Blafkin emphasized clarity for joiners and leavers alike, while the pact bars fuzzy terms like "No thanks, I don't want free shipping" and demands upfront cost disclosures with easy opt-outs.

Going forward, Amazon must snag explicit nods for charges and streamline exits, a win for watchdogs hammering Big Tech's grip on recurring revenue—though at $2.5 billion, it's a drop for a firm raking that in sales every 33 hours.

The case underscores rising scrutiny on subscription traps, with the FTC eyeing similar probes into rivals.