amazon prime ftc settlement lawsuit — what happened
Amazon will refund some Prime members as part of a $2.5 billion settlement with the Federal Trade Commission, with $1.5 billion returned directly to customers. The FTC called this its largest-ever settlement and the second-highest refund award in history, saying Amazon “used sophisticated subscription traps” that tricked shoppers into enrolling in Prime and made cancellation difficult. The FTC estimates about 35 million customers were “harmed by (Amazon’s) deceptive Prime enrollment practices” and could be eligible for a refund.
What the amazon prime ftc settlement lawsuit means for members
Anyone who signed up for Amazon Prime or “unsuccessfully attempted to cancel” Prime in the United States between June 23, 2019, and June 23, 2025, is eligible for a share of the settlement. The FTC’s final order lays out who gets automatic payments and who must submit claims.
Who gets automatic refunds
Customers who all of the following apply to will receive an automatic refund within 90 days of the FTC order:
- Used no more than 3 Prime Benefits within a year of enrollment, and
- Enrolled through a “challenged enrollment flow” — the Universal Prime page, the shipping option select page, Prime Video, or Amazon’s single-page checkout.
Automatic payments will refund up to the total membership fees paid, but no more than $51 per eligible customer.
Who can submit claims
- Anyone who submits a valid claim and is approved will be paid up to $51.
- Claims for unintentional enrollment – paid after automatic payments, for the total membership fees paid (up to $51).
- Prime subscribers who were unable to cancel will be refunded in the next group, also up to $51.
If remaining funds aren’t enough to cover all approved claims, refunds will be paid on a pro rata basis. Taking into account the total amount claimants were eligible to receive and the number of Prime Benefits used. That means many customers may receive less than the maximum allowed and likely less than what they actually paid.
How to file a claim under the amazon prime ftc settlement lawsuit
A public claims website has not yet been posted. The FTC’s order says:
- Links to the claims site will appear on amazon.com and the Amazon Prime page or in the Amazon app when available.
- Within 30 days after Amazon completes automatic payments, anyone eligible to submit a claim will be notified by email and mailed letters.
- Claimants will have up to 180 days after receiving the claims form to submit it to Amazon via email, pre-paid mail, or the settlement website.
Amazon’s response
Amazon said it and its executives “have always followed the law.” In its statement, the company added.
“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. We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.”
Key takeaways
- The settlement totals $2.5 billion, with $1.5 billion designated for direct customer refunds.
- About 35 million customers may be eligible.
- Refunds cap at $51 per person for most claim types, and payments may be pro rata if funds run short.
- A claims website is pending. Notifications and claim windows follow the automatic payments timeline.
Stay tuned for more on the amazon prime ftc settlement lawsuit and how to make an amazon settlement claim. Follow TNN for latst US news today and Canada news today.
