Consumer Fraud

Amazon Prime $2.5 Billion FTC Settlement

Amazon Prime $2.5 Billion FTC Settlement — Consumer Fraud class action lawsuit

Case Overview

The Federal Trade Commission filed suit against Amazon in 2023, alleging that the company engaged in deceptive practices by enrolling tens of millions of customers in Amazon Prime subscriptions without their knowledge or informed consent. The FTC further alleged that Amazon made the cancellation process intentionally difficult and confusing for Prime members attempting to end their subscriptions. This lawsuit was part of the FTC's broader effort to hold major technology companies accountable for unfair and deceptive business practices affecting consumer autonomy and choice.

Following the settlement reached in 2025, Amazon agreed to pay a total of $2.5 billion to resolve the FTC's claims. The settlement includes $1.5 billion in direct refunds to affected customers and a $1 billion civil penalty. Some eligible customers received automatic refunds in November and December of 2025, though not all affected customers were included in the automatic distribution. The deadline for eligible customers to file claims for compensation is July 27, 2026. Eligible Prime members can receive up to $51 in refunds via check, PayPal, or Venmo, with Amazon expecting to process payments by late 2026. Amazon denied any wrongdoing as part of the settlement agreement.

Who May Qualify

You must be an Amazon Prime customer in the U.S. who either: (1) signed up for a Prime subscription through a "challenged enrollment flow" (including the universal Prime decision page, shipping selection page, single page checkout, or Prime Video enrollment flow) or (2) tried to cancel through the online cancellation flow but were unable to do so between June 23, 2019, and June 23, 2025. Additionally, you must have used no more than three Amazon Prime Benefits in any 12-month period following enrollment. You may have received a notice by email or mail if you are eligible.

Frequently Asked Questions

Am I eligible for the Amazon Prime FTC settlement?

You qualify if you're a U.S. Amazon Prime customer who enrolled through a challenged enrollment flow or couldn't cancel during the enrollment window (June 23, 2019 - June 23, 2025), and used no more than three Prime benefits in any 12-month period after enrollment. Check your email or mail for an eligibility notice, or contact Amazon at admin@SubscriptionMembershipSettlement.com.

How much money can I get from the Amazon settlement?

Eligible customers can receive up to $51, which can be paid via check, PayPal, or Venmo. Amazon expects to send payments in late 2026, though a specific mailing date hasn't been announced.

What is the deadline to claim the Amazon Prime settlement?

The deadline to file a claim is Monday, July 27, 2026. You can file online at https://www.subscriptionmembershipsettlement.com/ or contact Amazon directly at admin@SubscriptionMembershipSettlement.com.

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