Amazon has agreed to pay $2.5 billion to settle a Federal Trade Commission (FTC) lawsuit that accused the company of misleading millions of people into enrolling and staying in Amazon Prime. The FTC called the deal “historic,” saying it’s one of the biggest settlements ever reached by the agency, as per USA Today.
What the lawsuit was about
The FTC filed the lawsuit in 2023, claiming Amazon coerced customers into Prime memberships through tricky website designs and then made it very difficult for them to cancel. Federal regulators said millions of users were drawn into paying for subscriptions they did not intend to keep because of the way Amazon’s enrollment and cancellation processes were structured. The agency argued that Amazon’s design choices caused people to enroll unintentionally or discouraged them from leaving the program.
According to The Independent, the settlement includes $1 billion in civil penalties and $1.5 billion in redress payments to affected customers. The trial had already started in Seattle when Amazon decided to settle.
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What Amazon says
Amazon has denied any wrongdoing. Company spokesperson Mark Blafkin said the company “executives have always followed the law” and have worked hard to make it “clear and simple” for users to sign up or cancel Prime. Amazon also agreed to make changes to its website to ensure users understand what they’re signing up for, as per the Independent.
Are you eligible for refund?
Customers are eligible for refunds if they signed up for Amazon Prime between June 23, 2019, and June 23, 2025, and either:
Tried but failed to cancel their subscription, or
Signed up through certain “challenged” pages, such as the Single Page Checkout or Prime Video enrollment flow.
Payments will depend on how much each person paid in Prime fees, up to a maximum of $51 per customer, as per court order.
How to get your refund
You do not need to file a claim right away. Automatic payments will be sent to users who used Prime benefits three or fewer times during any 12 months of membership. These payments will be sent by December 24, 2025.
Those who do not qualify for automatic payments will get instructions from a third-party claims administrator by January 23, 2026, and can submit claims until July 23, 2026.
The FTC Chair Andrew Ferguson called the ruling a “monumental win” that ensures Amazon “never does this again.”
FAQs
1. Who can get money from the Amazon Prime settlement?
Customers who signed up for Prime between June 23, 2019, and June 23, 2025, and either failed to cancel or signed up through certain Amazon pages, are eligible.
2. How much money will I get from the settlement?
Eligible customers can receive up to $51, depending on how much they paid in Prime fees.
3. Do I need to file a claim to get my refund?
Not right away. Automatic payments will go to users who have used Prime benefits three times or fewer in 12 months. Others can file claims between January 23 and July 23, 2026.
Amazon $2.5B FTC Prime settlement: How to check eligibility and claim your refund
