Amazon Prime $2.5 Billion Settlement: Who Qualifies for Refunds and How to Claim

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Learn who is eligible for compensation, how much you can receive, and the steps to apply under the FTC’s historic case against Amazon.

Amazon agreed on Thursday to pay $2.5 billion to resolve allegations from a U.S. regulator that accused the company of deceptive practices in signing up consumers for Amazon Prime.

The lawsuit, filed by the Federal Trade Commission (FTC) in federal court in Seattle, claimed that Amazon knowingly misled customers into enrolling in its Prime service — which costs $139 per year — during the checkout process.

This settlement marks one of the largest financial recoveries by the FTC in a consumer protection case.

The case centers on two main accusations:

1. Amazon enrolled customers without their explicit consent through confusing checkout processes.
2. Amazon made cancellation deliberately difficult, using a system internally nicknamed “Iliad” — a reference to Homer’s epic about the long and arduous Trojan War.

According to the FTC, Amazon’s checkout process forced customers to navigate confusing interfaces. To decline Prime membership, users had to locate small, discreet links, while prominent buttons made it easy to accept.

The agency also said that crucial information about Prime’s price and auto-renewal was often hidden or buried in fine print.

Under the settlement, Amazon must:

• Reform its Prime sign-up and cancellation processes.
• Offer clear opt-out options.
• Simplify cancellation procedures.
• Implement new disclosure requirements before charging consumers.

A court ruling last week had already determined that Amazon Prime subscriptions are subject to consumer protection laws, noting that Amazon obtained consumers’ billing information before fully disclosing the subscription terms.

In the proposed settlement, filed before the third day of testimony in Seattle, Amazon neither admitted nor denied wrongdoing.

The company did not immediately respond to AFP’s request for comment.

This case is part of a wave of lawsuits in recent years — filed by both Republicans and Democrats — aimed at curbing the power of U.S. tech giants.

How Much Money Can an Impacted Individual Receive

• The total settlement is $2.5 billion.
• Of that, $1.5 billion is earmarked for consumer refunds/reparations. Individuals who qualify will receive up to $51 each.

You are likely eligible if you meet one or more of these conditions:

1. You subscribed to Amazon Prime in the U.S. between June 23, 2019, and June 23, 2025 under one of the allegedly deceptive sign-up flows (such as “Single Page Checkout”).
2. You used very few Prime benefits during the first year after signing up—specifically, no more than 3 benefits. If so, you may receive the automatic $51 refund.
3. You tried to cancel your Prime membership during that period but found the cancellation process difficult or confusing and were unable to successfully cancel.

Also:

• The FTC estimates about 35 million Prime customers are eligible in total.
• Some people who used more benefits might still be eligible if they submit a claim form.

Here’s how the process works or will work, based on what the FTC and related reports say:

• Automatic refunds: If you meet criteria like using no more than 3 Prime benefits in a 12-month period and were enrolled via deceptive flow, you may not have to do anything — the refund will be sent to you automatically.
• Claims process: If you used more benefits (but still qualify under some categories) or attempted cancellation but failed, you’ll need to submit a claim form.
• Notification: Amazon and/or the FTC will notify eligible customers (via email, postal mail, app/website notifications) once the process is established.
• Deadline: Once you’re notified, there will be a window of time — likely 180 days from when notices are sent — in which to submit a claim if one is required.
• Distribution method: Refunds will likely be issued via the same method you paid (credit card, bank account) or possibly in the form of account credits. Some may receive checks if no other payment method is viable.