Customers seeking a refund from Amazon's $2.5 billion settlement have until Monday, July 27, to file a claim. The settlement, approved by the Federal Trade Commission (FTC), addresses allegations that Amazon misled consumers into signing up for Prime memberships and made it difficult to cancel.
The settlement includes $1 billion in civil penalties and $1.5 billion designated for Prime subscribers. Amazon is also required to revise its enrollment and cancellation policies for Prime to prevent future violations of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
Internal Amazon documents revealed during the FTC's investigation indicated that company executives and employees were aware of the problematic enrollment and cancellation processes. Some internal communications described subscription practices as a "shady world" and referred to difficulties in unsubscribing as an "unspoken cancer."
Amazon has not admitted liability as part of the settlement. To be eligible for a refund, consumers must meet specific criteria. They must have been a U.S. consumer who signed up for Prime and either were unintentionally enrolled through a challenged method between June 23, 2019, and June 23, 2025, or attempted to cancel online during that period and encountered difficulties. Additionally, eligible customers must have used fewer than 10 Prime benefits within their 12-month Prime membership period and not already received automatic payment as part of this settlement.
Approved claimants could receive up to $51, depending on the duration of their membership and any refunds or credits already received. Amazon has 30 days to review claims, with payouts expected by September 2026.
The settlement also mandates that Amazon implement a clear button for customers to decline Prime, rather than a deceptive option like "No, I don’t want Free Shipping." The company must also provide clear disclosures regarding Prime benefits, costs, and billing cycles.
The FTC has cautioned consumers about potential scams, emphasizing that no FTC representatives will contact individuals directly about refund eligibility. Any such contact should be considered fraudulent.