Amazon to Pay $51 Refunds in $2.5 Billion Prime Settlement
Amazon will pay $1.5 billion directly to Prime customers as part of a major settlement with the FTC over deceptive subscription practices. Eligible US customers could receive automatic $51 payments by December 2025.
Key Takeaways
- $1.5 billion allocated for customer refunds
- $51 automatic payments for eligible Prime members
- Claims deadline: July 23, 2026
- Amazon must simplify cancellation process as part of settlement
Settlement Details
The Federal Trade Commission alleged Amazon used deceptive tactics to enroll millions into Prime subscriptions while making cancellation “extremely difficult.” The $2.5 billion settlement includes $1 billion in FTC fines and $1.5 billion for customer reimbursements.
Amazon has not admitted wrongdoing but agreed to the settlement terms, which include creating clearer subscription disclosures and a “clear and conspicuous” button to decline Prime membership.
Eligibility Requirements
Approximately 35 million Prime customers in the US may qualify for refunds if they:
- Signed up between June 23, 2019 and June 23, 2025
- Attempted but failed to cancel subscriptions
- Enrolled through specific methods like free trials or same-day delivery offers
Court documents identify these enrollment methods as “challenged enrollment flow” including Universal Prime Decision Page and Prime Video enrollment flows.
Payment Process
Customers who used Prime benefits three times or less in any 12-month period will receive automatic $51 payments by December 24, 2025. Payments will be monetary compensation, not Amazon credits.
After automatic payments, other eligible customers can submit claim forms until July 23, 2026. The third-party administrator will send claim information by January 23, 2026.
Official Reactions
FTC Chair Andrew Ferguson called the settlement “a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”
Amazon stated: “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.”
The settlement represents approximately 33 hours of Amazon’s sales revenue, making it “relatively painless” for the tech giant according to Reuters analysis.
