SEATTLE, WA – Amazon is set to refund a portion of its Prime membership fees to its members as part of a $2.5 billion settlement with the Federal Trade Commission (FTC), resolving a two-year dispute over the company’s enrollment and cancellation practices. Of the total settlement, $1.5 billion will be returned directly to customers, making it the largest settlement in the FTC’s history.
The FTC stated Thursday that Amazon “used sophisticated subscription traps” to enroll online shoppers into Prime deceptively and then made it difficult for subscribers to cancel. The agency estimates approximately 35 million customers were “harmed” by these practices and could be eligible for a refund.
Who is Eligible for a Refund?
Anyone who signed up for Amazon Prime or “unsuccessfully attempted to cancel” their subscription in the U.S. between June 23, 2019, and June 23, 2025, is eligible for a share of the settlement.
How Refunds Will Work
The refund amount for eligible members will be up to $51, which is the total amount of membership fees paid.
- Automatic Refunds: Customers who enrolled through a “challenged enrollment flow” (e.g., the Universal Prime page, shipping option select page, Prime Video, or single page checkout) and used no more than three Prime benefits within a year of enrollment will receive an automatic refund within 90 days of the FTC order.
- Claim-Based Refunds:
- Those who submit a valid claim for unintentional enrollment will be paid after the automatic payments, up to a maximum of $51.
- Prime subscribers who were unable to cancel will be refunded in the next group, up to $51.
If the remaining funds are insufficient to cover all claimants, refunds will be issued on a “pro rata basis,” meaning many customers may receive less than the maximum amount.
Filing a Claim
A website detailing the claims process has not yet been made public. Once available, links to the settlement website will be posted on amazon.com and the Amazon Prime page.
Within 30 days after Amazon completes its automatic payments, all eligible customers will be notified via email and mailed letters. Eligible customers will then have up to 180 days after receiving the claims form to submit it to Amazon.
Amazon’s Response
In a statement, Amazon asserted that the company and its executives “have always followed the law.”
“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 company added.
