Last week, the Federal Trade Commission (FTC) took a significant step by taking Amazon to court. Just two days into the trial, Amazon agreed to a staggering $2.5 billion settlement—a clear indication of the seriousness of the allegations.
The central issue of the lawsuit focused on Amazon Prime’s subscription service. The FTC accused Amazon of employing deceptive design tactics that misled millions of consumers into subscribing to Prime. Once enrolled, these customers faced a frustratingly complex cancellation process.
This monumental settlement consists of a $1 billion civil penalty, the largest ever for an FTC rule violation, and $1.5 billion earmarked for refunds to affected consumers—the second-highest restitution award in FTC history.
“Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again,” stated FTC Chairman Andrew N. Ferguson in a press release.
In response, Amazon spokesperson Mark Blafkin reassured the public, saying, “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.”
According to the FTC, around 35 million consumers could be affected by this situation. You might even be one of those eligible for refunds totaling an unprecedented $1.5 billion.
Who Is Eligible for the Refund?
To be eligible, you must have been a U.S. customer who signed up for an Amazon Prime membership or attempted to cancel it between June 23, 2019, and June 23, 2025.
Moreover, you must have signed up using what the FTC refers to as a “challenged enrollment flow”—essentially, a misleading sign-up page. If you enrolled through the shipping option selection page (where free shipping inadvertently enrolled you in Prime), Prime Video, or specific Universal Prime Decision Pages, you’re likely eligible for a claim.
The first round of payouts will automatically occur within 90 days of the FTC order. If you enrolled using the challenged flow and utilized no more than three Prime benefits in any 12-month period, you’re automatically qualified for a payout. Prime benefits include, but are not limited to, free expedited shipping, provided the transaction did not already include that speed at no cost.
After the initial payouts, Amazon will send out claims forms within 30 days to others who qualify—this includes those who tried to cancel unsuccessfully or enrolled through a challenged flow while using up to ten Prime benefits over any 12-month window. Once you receive the form, you have 180 days to return it via email, prepaid mail, or a yet-to-be-established settlement website. Following submission, Amazon has a period of 30 days to review and issue your refund.
Importantly, affected customers will be refunded the total amount of their Amazon Prime membership fees paid during their subscription, capped at a maximum of $51 (approximately €48). Currently, a standard Prime membership goes for $14.99 monthly or $139 (around €131) annually.
If Amazon disburses less than $1 billion in the two payout waves, the company is obligated to continue automatic payouts until this threshold is met. For instance, refunds might also be issued to customers who fit other criteria but utilized up to four Prime benefits yet didn’t submit a claim.
What steps can I take to ensure I receive my refund?
Check whether you enrolled during the specified timeframe and through the challenged flow. Ensure you file your claim promptly to secure your portion of the refund.
How can I determine if I signed up through a misleading design?
Reflect on how you initially registered for Amazon Prime. If your sign-up was linked to selecting options for free shipping or other services that you didn’t initially understand required a Prime subscription, you may qualify.
What if I accidentally canceled my Prime membership?
If you encountered difficulties when trying to cancel your membership, you may still be eligible for a claim. Ensure your documentation is thorough when you submit.
This historic settlement offers a chance for millions to reclaim their funds, so be proactive. As this case unfolds, monitor your eligibility and make sure to follow through with any necessary actions.
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