It is an opportune moment for consumers to reclaim their funds.
Amazon has consented to a significant settlement of $2.5 billion following allegations from the Federal Trade Commission (FTC) that the company enrolled customers in its Prime subscription service without their explicit consent and made the cancellation process unnecessarily complex.
“Today, we are returning billions of dollars to American consumers and ensuring that Amazon does not engage in such practices in the future,” stated FTC Chairman Andrew N. Ferguson.
This settlement comprises a civil penalty of $1 billion and $1.5 billion in refunds to affected customers, making it the largest settlement ever reached by the FTC and the second-highest refund award in history.
Individuals may qualify for a refund if they meet the following criteria:
- - They signed up for Amazon Prime between June 23, 2019, and June 23, 2025.
- - They attempted to cancel their Prime subscription but were unsuccessful during that time frame.
- - They are customers located in the United States.
Refunds are limited to a maximum of $51 per eligible customer, with payments to be disbursed in two phases, as reported by CNN.
Automatic refunds will be issued to customers who subscribed to Prime through a “challenged enrollment flow”—including the Universal Prime page, the shipping options selection page, the Prime Video page, or Amazon’s single-page checkout—provided they utilized no more than three Prime benefits within any 12-month period following their enrollment.
Eligible customers will receive an automatic refund within 90 days of the FTC order.
Customers who subscribed through a challenged enrollment flow or who unsuccessfully attempted to cancel their Prime subscription during the relevant period, and who utilized no more than 10 Prime benefits in any 12-month period, will be required to submit a claim form after the automatic payouts have been issued.
Amazon will communicate with customers via email and formal letters within 30 days following the completion of the automatic payments. After a claim is submitted, Amazon will have 30 days to review the claim and issue refunds.
As of now, the FTC and Amazon have not released an official claims website or specific procedural details. Once available, relevant information will be accessible via the company’s website and application. Eligible customers can expect to receive claim forms through both email and postal mail following the conclusion of the automatic payout period.
Claimants will have a maximum of 180 days from the receipt of their claim form to submit it using email, prepaid mail, or the claims website.
The FTC has reported that Amazon employed “sophisticated subscription traps” to mislead consumers into enrolling in Prime. This reportedly involved deceptive enrollment techniques and difficult-to-navigate cancellation processes, affecting approximately 35 million customers during the specified period.
Despite these allegations, Amazon has asserted that the company and its executives have consistently adhered to legal standards and view this settlement as an opportunity to advance and concentrate on innovating for its customers.
Individuals who have been members of Amazon Prime or who have attempted to cancel their subscription between mid-2019 and mid-2025 should remain vigilant for refund notifications.
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