Amazon Settles $2.5B Lawsuit Over Prime Enrollment And Cancellation Practices — Here’s How To Claim Your Refund
Amazon has settled a lawsuit regarding its Prime subscription.
Amazon Settlement
CNN reports that Amazon was sued in 2023 by the Federal Trade Commission (FTC) for allegedly tricking its customers into enrolling in its Prime subscription service and making it difficult to cancel. The FTC claims it violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
The lawsuit, which also targeted several Amazon executives, has been settled for $2.5 billion, according to a news release. It will pay a $1 billion civil penalty — reportedly the largest in a case involving an FTC rule violation — and provide $1.5 billion in refunds to nearly 35 million customers “harmed by their deceptive Prime enrollment practices.” Additionally, Amazon must end its unlawful practices surrounding Prime enrollment and cancellations.
“Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel,” said FTC Chairman Andrew N. Ferguson in the news release. “The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription. Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again. The Trump-Vance FTC is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay.”
How To Claim Your Refund
The Washington Post reports that those who will qualify for a payout are those who enrolled, attempted or failed to cancel, or accidentally signed up for a U.S. Prime subscription between June 23, 2019, and June 23, 2025. It is unclear exactly how much individuals will receive a refund because that will be determined by how many claim one. Reportedly, those who are enrolled as Prime members but used it three or fewer times within the subscription year could receive an automatic payment not exceeding $51. Those who used it more times will have to submit a claim form for the refund.
Amazon must notify those who qualify within 30 days and provide instructions to claim a refund.
Statement From Amazon
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” Amazon spokesperson Mark Blafkin in a statement, said according to CNN. “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.”
