Marina
Millions of Americans are about to receive unexpected cash payments from Amazon in a major federal settlement, which resolves one of the largest recent consumer-protection cases.
The company has agreed to pay a total of $2.5 billion to settle allegations that it misled millions into joining Amazon Prime and then made the cancellation process deliberately difficult.
Background of the Case
In 2023, the Federal Trade Commission (FTC) filed a lawsuit claiming Amazon’s enrollment flows manipulated users into subscribing to Prime and buried or obscured cancellation options.
According to the agency, around 35 million users were affected by what it termed “unwanted Prime enrollment” and “deferred cancellation.”
Amazon, while denying any wrongdoing and asserting it has always operated lawfully and transparently, opted to settle the matter to avoid prolonged litigation and potential reputational damage.
Who Will Be Paid & How Much
Court documents show that of the $2.5 billion total, $1 billion will go to civil penalties and the remaining $1.5 billion will fund direct refunds to eligible consumers.
The FTC notes that this refund fund is the second-largest in its history. Individual payments will vary based on how much was paid for Prime membership, with a cap of $51 per person.
Eligibility Criteria & Payment Timeline
The settlement covers Prime subscribers who joined between June 23, 2019 and June 23, 2025, and who either attempted unsuccessfully to cancel their membership or enrolled via what the FTC calls a “challenged enrollment flow.”
Examples include the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment, or Single-Page Checkout, where users were allegedly steered toward unwanted subscriptions.
Additionally, to qualify for automatic payment, a user must have used Prime benefits three times or fewer during any 12-month enrollment period. Most eligible consumers will receive refunds automatically, with payments expected by December 24.
Those who don’t receive an automatic payment but believe they qualify can file a claim via a third-party administrator; claims will open in early 2026, and the final deadline to submit is July 23, 2026.
This settlement marks a significant consumer-protection victory, as Amazon pays $2.5 billion to resolve allegations of misleading enrollment and hindered cancellations of Prime subscriptions.
Eligible subscribers will receive refunds automatically or by filing a claim, depending on their situation. It’s a reminder for consumers to monitor subscription policies and company practices closely.
FAQs
Who qualifies for a refund from Amazon’s settlement?
Consumers who joined Prime between June 23, 2019 and June 23, 2025, enrolled via a “challenged enrollment flow,” and used Prime benefits three times or fewer in any 12-month period are eligible for automatic payment.
How much will each eligible user receive?
The refund varies based on how much you paid in Prime fees, with an upper limit of $51 per person.
What if I didn’t get an automatic payment but believe I’m eligible?
You can file a claim through a third-party administrator when the claims process opens in early 2026; the deadline to submit is July 23, 2026.