Amazon agreed to a $2.5 billion deal resolving FTC claims it “tricked and trapped” users into Prime and made cancelation hard; many U.S. consumers who enrolled between June 23, 2019 and June 23, 2025—or tried and failed to cancel—can receive up to about $51, with some getting automatic refunds and others required to file a claim when notified.
What’s happening
- Amazon will pay $2.5 billion to resolve an FTC suit over allegedly deceptive Prime sign-ups and cancellations, including $1.5 billion earmarked for customer refunds that work out to roughly $51 per eligible person.
- The program includes automatic refunds for some low-usage accounts and a claims process for others, with timing tied to final court approval and administrator outreach.
Who is eligible
- U.S. consumers who enrolled in Prime through specific “challenged” flows between June 23, 2019 and June 23, 2025 may qualify, including enrollments via checkout, Prime decision pages, Prime Video, or single-page checkout.
- People who attempted to cancel online during the same window but didn’t complete the process—or clicked a retention “save offer” by mistake—are also within scope.
- Eligibility and whether a claim is required will be determined using Amazon’s records of enrollment/cancellation flows and Prime benefit usage.
Who is not eligible
- Consumers outside the U.S. are not covered by the settlement fund described here.
- People whose Prime activity substantially exceeded the usage thresholds for automatic payment or for claims may not qualify under the initial criteria, though subsequent payment rounds could broaden thresholds if funds remain.
How much money to expect
- Typical individual refunds are expected to be about $51 from the $1.5 billion customer fund, subject to pro rata adjustments if validated claims exceed available funds.
- If early payout rounds total less than $1 billion, additional automatic payment rounds may expand eligibility by gradually increasing the usage threshold until at least $1 billion is distributed.
How to get paid
- Automatic refunds: Certain customers who enrolled via a challenged flow and used limited Prime benefits should get an automatic refund for membership fees paid, capped around $51, with no claim form needed after final approval.
- Claims process: Others—such as those with slightly higher usage or those who unsuccessfully tried to cancel—will be prompted by email, mail, or a settlement website to submit a claim within the stated window.
- Expect the settlement administrator to handle notifications and processing, with payments following final court approval; keep an eye on official communications to avoid scams.
Timing and next steps
- Consumers should watch for official notices after final approval, then either do nothing (if told an automatic refund is coming) or submit the claim by the stated deadline via the official settlement portal.
- Payments are anticipated after approval and processing; the administrator will outline specific timelines in the notice and on the settlement site.
Why it matters
- The settlement ranks among the larger FTC-related consumer refund programs and underscores regulators’ scrutiny of dark patterns in subscription flows.
- Amazon has said it admitted no wrongdoing and noted it has already simplified sign-up and cancellation processes.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
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