Amazon to Pay $2.5 Billion in FTC Prime Settlement: Eligibility Guide
Amazon will pay $1.5 billion directly to customers as part of a massive $2.5 billion settlement with the Federal Trade Commission over Prime subscription practices. The FTC accused Amazon of “knowingly duping” users into auto-renewing subscriptions and making cancellation difficult.
Key Takeaways
- Amazon settles with FTC for $2.5 billion over Prime subscription practices
- Eligible customers can receive up to $51 in refunds
- Some payments are automatic, others require filing a claim
- Claims period covers June 2019 through June 2025
FTC Lawsuit Background
The settlement follows a 2023 FTC complaint that Amazon deliberately complicated Prime cancellation while enrolling customers in automatically renewing subscriptions. Amazon maintained that it “has always followed the law.” The case was prompted by a 2022 Business Insider investigation revealing Amazon executives knew about cancellation difficulties but didn’t address them.
Who Qualifies for Amazon Prime Refunds?
You may be eligible for compensation if you:
- Signed up for Amazon Prime between June 23, 2019 and June 23, 2025
- Attempted to cancel your Prime subscription during this period
- Accepted an offer to maintain your subscription when trying to cancel
Automatic vs. Claim-Based Payments
Some customers will receive automatic payments up to $51 if they used “no more than 3 Prime benefits” in their first year and signed up through specific “challenged enrollment flows.” These include enrollment points like:
- Prime Video enrollment page
- Single-page checkout
- Shipping selection page
- Universal Prime page
According to the FTC, “The refunds are automatic and will go out by December 25, 2025.” Other customers must file claims, which Amazon will process after automatic refunds are distributed. Final payment amounts may be less than the maximum $51.
