The Amazon Prime logo is displayed on the side of an Amazon delivery truck in Richmond, California, on June 21, 2023.
Justin Sullivan | Getty Images
Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that the company duped users into paying for Prime memberships, the regulatory agency announced Thursday.
The surprise settlement comes as Amazon and the FTC were just three days into the trial in a Seattle federal court. Opening arguments in the case occurred Tuesday, but the settlement allows Amazon to avoid having a jury at the trial return a verdict with potentially larger damages than the settlement with the FTC.
The lawsuit, filed by the FTC in June 2023 under the Biden administration, claimed that Amazon deceived tens of millions of customers into signing up for its Prime subscription program and sabotaged their attempts to cancel it. Three senior Amazon executives were at risk of being held individually liable if the jury sided with the FTC.
Amazon will pay a $1 billion civil penalty to the FTC and will refund $1.5 billion to an estimated 35 million customers impacted by “unwanted Prime enrollment or deferred cancellation,” the agency said. Under the terms of the settlement, Amazon will give $51 to eligible customers within 90 days.
Amazon admitted no wrongdoing in agreeing to settle, the FTC said.
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The agreement prohibits Amazon from misrepresenting the terms of Prime. It also requires the company to make clear and conspicuous disclosures about the terms of the program during enrollment, and says Amazon must get consumers’ express consent before charging them for a subscription. Amazon also has to provide an easy way for users to cancel their subscription, the agency said.
As part of the settlement, Amazon and two of its executives, Prime boss Jamil Ghani and Neil Lindsay, a senior vice president in the company’s health division who previously held a role in the Prime business, will be prohibited from unlawful conduct.
FTC Chairman Andrew Ferguson called the penalty a “monumental win” for the agency under the Trump administration.
“The Trump-Vance FTC is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay,” Ferguson said in a statement.
Amazon spokesperson Mark Blafkin said in a statement that the company and its executives “have always followed the law and this settlement allows us to move forward and focus on innovating for customers.”
The penalty is one of the largest ever imposed by the FTC. The agency in 2019 hit Facebook, now known as Meta, with a $5 billion fine for violating consumers’ privacy.
Still, the $2.5 billion fine is equivalent to roughly 0.1% of Amazon’s market cap, which now sits at close to $2.4 trillion. Shares of Amazon were up slightly following the announcement.
Launched in 2005, Amazon’s Prime program has grown to become one of the most popular subscription services in the world, with more than 200 million members globally, and it has generated billions of dollars for the company. Membership costs $139 a year and includes perks like free shipping and access to streaming content. Data has shown that Prime members spend more and shop more often than non-Prime members.
Amazon still faces a bigger legal case with the FTC.
In 2023, the regulator accused the company of illegally stifling competition in the e-commerce market. The FTC was joined by attorneys general from 17 states, in alleging Amazon used “monopoly power” to inflate prices, degrade quality for shoppers and unlawfully exclude rivals, thereby undermining competition.
Amazon won partial dismissal of the case last year, but is still slated to go to trial against the FTC in 2027.
Earlier this month, the U.S. district judge overseeing Google’s antitrust case ruled against the most severe consequences that were proposed by the Department of Justice, including the forced sale of Google’s Chrome browser. Google lost the case against the government last year, but was spared of having to divest of any key assets.
A crane towers above the mobile launcher 2 adjacent the Vehicle Assembly Building at Kennedy Space Center on Tuesday, July 22, 2025.
Richard Tribou | Tribune News Service | Getty Images
The director of NASA’s Marshall Space Flight Center, Joseph Pelfrey, announced his resignation from the role on Thursday, CNBC confirmed.
Pelfrey said in an email to employees at the space agency that as NASA focuses on its mission to return humans to the moon, it will be “important for agency leadership to move forward with a team they choose to execute the tasks at hand.”
The email also said Pelfrey would work with NASA leaders to “pursue new ways” to “serve our space program and our great nation.” Pelfrey wasn’t immediately available to comment.
NASA confirmed Pelfrey’s resignation and said in an email to CNBC that the agency is proceeding “with a public, open competition to find the next permanent director at one of the agency’s most important centers for human spaceflight.”
At Marshall Space Flight Center, in Huntsville, Alabama, Pelfrey oversaw “7,000 onsite and near-site civil service and contractor employees,” and “an annual budget of approximately $5 billion,” according to a NASA web page describing his responsibilities. The space center now employs over 6,000 people, according to the center’s official government website.
Pelfrey had planned an all-hands conference with Marshall employees this week that was canceled, said agency staffers, who asked not to be named to discuss sensitive matters. They said Pelfrey’s resignation came as a surprise.
The White House’s 2026 budget request, which has not yet been enacted into law, includes funding for the space agency. However, NASA’s resources have declined amid Trump administration budget cuts.
About 4,000 NASA employees left through a deferred resignation program offered by the agency, and others were let go through cuts initiated by the Department of Government Efficiency (DOGE), an effort that was led by Elon Musk during his days with the Trump administration.
The administration also defunded and compelled the closure of the NASA Goddard Institute for Space Studies, which was housed in abuilding owned by Columbia University in New York.
Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.
Gonzalo Fuentes | Reuters
Tesla shares fell more than 4% on Thursday after data out of Europe showed a continuing sales slump for the automaker, despite strong demand for fully electric vehicles in the region.
Tesla EV registrations in Europe, a proxy for sales, fell by about 23% year-over-year in August, according to data from the European Automobile Manufacturers’ Association (ACEA) on Thursday.
There were 14,831 Tesla EV registrations in Europe last month, down from 19,136 in August 2024. In the first eight months of this year, Tesla EV registrations in Europe declined 32.6%, the ACEA said.
Meanwhile, total EV registrations throughout the region rose by around 26% through August compared to the same period in 2024. By contrast, registrations for petrol and diesel-powered vehicles declined by more than 20% over that stretch.
Still, RBC analysts wrote in a note on Thursday that they expect Tesla’s total deliveries for the third quarter could amount to 456,000, above a FactSet-compiled consensus of 448,000 deliveries and a Visible Alpha consensus of 440,000 deliveries.
The analysts expect a bump for Tesla as consumers rush to buy EVs in the U.S. before a $7,500 federal tax credit expires at the end of September.
Even with Thursday’s slide, Tesla’s stock has bounced back following a brutal start to the year. It’s now up 5% in 2025 after plunging 36% in the first quarter.
Musk’s political activism in the U.S. and beyond has hurt the Tesla brand and dampened its appeal to many prospective EV buyers.
Earlier this year, Musk endorsed Germany’s far-right AfD party, and this month he appeared by video at an anti-immigrant rally in the U.K. that turned violent. The rally was led by activist Tommy Robinson, a convicted fraudster with a violent criminal record.
British Prime Minister Keir Starmer rebuked Musk for “dangerous” comments that he made at the rally, where 26 police officers were injured. Musk told attendees, “violence is coming to you” and “you either fight back or you die.”
To revitalize interest in the brand, Tesla has said an affordable new model is in the works, which could help it fend off increased competition from the likes of Volkswagen, BYD and other EV makers that have been picking up market share.
Dario Amodei, co-founder and chief executive officer of Anthropic, at the World Economic Forum in 2025.
Stefan Wermuth | Bloomberg | Getty Images
A federal judge on Thursday preliminarily approved Anthropic’s offer to pay $1.5 billion to settle a class action lawsuit with a group of authors, in what will be the largest publicly reported copyright recovery in history.
The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson. It alleged that Anthropic illegally downloaded books from pirated databases like Library Genesis and Pirate Library Mirror.
“We are grateful for the Court’s action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can’t shortcut the law or override creators’ rights,” the authors said in a joint statement Thursday.
Anthropic didn’t immediately respond to CNBC’s request for comment.
The startup was founded by former OpenAI research executives, including Anthropic CEO Dario Amodei, in 2021. Anthropic, which is valued at $183 billion, is best known for its AI assistant Claude.
AI startups and media companies have been closely following this lawsuit against Anthropic as they work to outline what copyright infringement means in the AI era.
Anthropic initially proposed the $1.5 billion settlement earlier this month. The company said it would pay roughly $3,000 per book plus interest, and it agreed to destroy the datasets containing the allegedly pirated material.
U.S. District Judge William Alsup initially expressed some reservations about Anthropic’s offer, including concerns over how to ensure authors would be properly informed. Alsup ultimately approved the settlement after “several weeks of rigorous assessment and review,” according to a release.
Alsup will consider final approval of the settlement once the notice and claims processes are complete, the release said.
Aparna Sridhar, Anthropic’s deputy general counsel, said in a statement that the company is pleased with the determination, and that the settlement “simply resolves narrow claims about how certain materials were obtained.”
“The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” Sridhar said.