Amazon is set to make significant refunds to Prime members following a landmark $2.5 billion settlement with the Federal Trade Commission (FTC). This agreement is linked to allegations that Amazon engaged in deceptive practices concerning its Prime subscription service.
Details of the Amazon Settlement
The settlement stems from a 2023 FTC antitrust lawsuit. The commission accused Amazon of coercing millions into subscribing to Prime and complicating cancelation processes. In response, Amazon has committed to refund eligible customers who signed up between June 23, 2019, and June 23, 2025.
Eligibility Criteria
- Subscribers must have enrolled in Prime during the eligible period.
- They should have attempted to cancel their subscription unsuccessfully.
- Enrollees through a “challenged enrollment flow” are also included. This encompasses specific pages like the Universal Prime Decision Page and Prime Video enrollment flow.
Compensation Structure
Eligible users can expect compensation based on their total Prime membership fees, with a maximum payout of $51 per individual, as specified in the court order. Payments will be in cash, not in the form of Amazon gift cards.
Distribution of Payments
Payments will be administered by a third-party claims manager. Those who utilized their Prime benefits three times or fewer during any 12-month period will receive automatic payments by December 24, 2025.
For others, information on how to file a claim will be distributed by January 23, 2026. Claims need to be submitted by July 23, 2026.
Next Steps for Eligible Customers
- Check eligibility based on subscription dates and attempted cancellations.
- Watch for communication from the claims administrator regarding the filing process.
- Be prepared to submit claims within the specified period if not receiving automatic payments.
Amazon has maintained that it complied with the law and aims to simplify the process of signing up and canceling Prime memberships. The company has committed to enhancing its website in light of the settlement.
