Amazon has agreed to a $2.5bn settlement with the US Federal Trade Commission (FTC) after allegations it enrolled customers in Prime subscriptions without proper consent and made cancellations unnecessarily difficult. Millions of consumers may now qualify for refunds of up to $51.
Who can claim compensation
The settlement applies to US customers who either signed up for Amazon Prime between 23 June 2019 and 23 June 2025 through certain sign-up flows or who tried but failed to cancel their subscription during that period.
The FTC identified “challenged enrollment flows” that included the universal Prime decision page, shipping option selection, Prime Video enrolment, and single-page checkout.
Consumers who attempted to cancel but instead ended up keeping Prime—sometimes after accepting “save offers”—are also covered.
Amazon will use its internal records to identify eligible subscribers and failed cancellation attempts.
How the amazon prime settlement works
Two types of payments will be issued depending on the consumer’s Prime usage:
- Automatic refunds: Customers who used three or fewer Prime benefits in a 12-month period after signing up will receive refunds of all membership fees paid, up to $51. These refunds will be automatic and require no action from consumers. Payments are expected about 90 days after the court grants final approval.
- Claims process: Customers who used up to 10 Prime benefits in a 12-month period and either enrolled through a challenged flow or failed to cancel must submit a claim form. If validated, they may receive refunds up to $51.
Amazon will send claim forms by email, post, or through a dedicated settlement website. Forms must be submitted within 180 days of receipt. If more than $1.5bn is claimed, payouts will be reduced proportionally.
Breakdown of the $2.5bn settlement
The settlement fund includes a $1bn civil penalty, the largest ever imposed for an FTC rule violation, and $1.5bn allocated for consumer redress.
The FTC estimates around 35 million consumers were affected, making this the second-largest restitution award in the agency’s history.
Amazon will cover all administrative costs linked to the claims process. Key dates include automatic payouts within 90 days of settlement approval, followed by claim form distribution within 30 days, and a six-month deadline for claims submission.
The FTC accused Amazon of violating federal consumer protection laws by designing confusing interfaces and complex cancellation steps.
While the company has not admitted wrongdoing, it agreed to the settlement to resolve the case.
