Amazon has announced plans to initiate refunds for qualifying Prime subscribers by the end of the year. This decision follows a significant $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of misleading marketing practices.
Background of the Settlement
The settlement is one of the largest consumer protection agreements in U.S. history. It arose from a lawsuit against Amazon which accused the company of using deceptive methods to attract users to its Prime service. Furthermore, the FTC stated that canceling subscriptions was unreasonably complicated.
Out of the total settlement amount, $1.5 billion will be allocated to reimburse eligible subscribers, while the remaining $1 billion serves as a civil penalty.
Changes Implemented by Amazon
Although Amazon did not admit to any wrongdoing, the company is modifying its processes. As part of the settlement, Amazon is required to provide a clear option for users to decline Prime during checkout. Additionally, the cancellation process will be simplified.
Official Statements
Mark Blafkin, a senior manager at Amazon, stated, “This settlement allows us to move forward and focus on innovating for customers.” He emphasized that the company aims to make both the sign-up and cancellation processes straightforward.
Eligibility for Refunds
Only customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025, are eligible for the payouts. This also applies to those who subscribed through problematic enrollment processes or who struggled to cancel their memberships.
Specific Enrollment Pages
- Prime Video enrollment
- Universal Prime Decision page
- Shipping Option Select page
- Single Page Checkout
To qualify for a refund, customers must not have used more than ten Amazon Prime benefits in any 12-month period.
Payment Process and Amount
Eligible customers who signed up via the challenged processes and utilized no more than three Prime benefits in a year will receive automatic payment from Amazon within 90 days. Others will need to file a claim to receive their refunds, with Amazon obligated to notify them within 30 days of making automatic payments.
Payouts will be capped at a maximum of $51, which could be adjusted based on the number of Prime benefits used. Customers should expect to receive their payments by December 24. Note that refunds are only available to customers in the United States.
