People in America who had a Prime subscription during the class period can receive a refund under the $2.5 billion settlement. The Federal Trade Commission announced the refund, and the settlement PDF is out. You can find every detail from settlement payout, eligibility, to the claim process here.
The FTC filed a lawsuit against the e-commerce giant Amazon, alleging the company has manipulated users into subscribing to Prime and made it hard to later cancel it. This led to customers being stuck on the subscription and paying for it.
The FTC and Amazon have reached a settlement, where Amazon has agreed to a $1 billion civil penalty, and the rest $1.5 billion will be used to refund affected customers. The settlement is reached, where payment will go in two waves -automatic and the claim process.
What are the allegations filed on Amazon under the $2.5 billion settlement?
The FTC filed the antitrust lawsuit against Amazon in June 2023 after millions of customers complained about the Prime subscription and the company tricking the customers into subscription. Here are the allegations that FTA has accused Amazon of in this lawsuit:
- The FTC investigated the matter and found that Amazon has used subscription traps, where they manipulate customers to enroll for Prime membership and later make the cancellation process hard.
- The Commission says the company has developed a user interface that leads customers to subscribe to Prime without their knowledge, and they are paying for it without any knowledge.
- While doing so, they made the system so complex that users were not able to cancel it. The system has multiple pages and buttons, which frustrate customers to keep the subscription.
- FTC claims Amazon has violated the ROSCA (Restore Online Shoppers’ Confidence Act) and FTC laws through such practices.
- The Commission also reported that Amazon executives and employees were aware of such a subscription drive and the unwanted subscription.
Who will receive the Amazon FTC refund?
Amazon and FTC have settled the lawsuit now, and the customers who can claim and receive the refund are those who meet the following conditions:
- You were an Amazon Prime subscriber between 23 June 2019 and 23 June 2025 via Challenge Enrollment Flow and used three or more Prime benefits in a year. You will receive the automatic payment from the payments.
- You tried to cancel the subscription but faced the complex system and were unable to do so.
- If you have signed up for the Amazon Prime membership through the challenged Enrollment Flow and have not used more than 10 Prime benefits for a year, you will have to claim the payout.
How much Amazon settlement payout can you expect?
Amazon is paying $2.5B to settle the lawsuit, where $1 billion will be paid as a civil penalty, $500 million will be paid within 14 days of the order, and the rest will be paid within 18 months of the order. The $1.5 billion is used to compensate customers suffering from the Amazon subscription trap.
According to customers, millions of customers were affected, and based on the estimation, the eligible customers can expect a payout of up to $51 from the automatic or claim process. Remember, the payout depends on the period you have subscribed to Prime and paid for it.
When will you receive the automatic Amazon payment?
Eligible customers who have not used more than 3 benefits in 12 months will receive the automatic payment under the settlement. The automatic settlement payout must have already begun, as the agreement states that it will begin within 90 days of the order.
So, as the order was passed on 25 September 2025, you can expect your automatic payment based on the Amazon record by December 2025.
How to claim the Amazon $2.5B settlement?
Amazon will begin the claim process within 30 days of the automatic payment completion, so you can expect the process to begin in January or February 2026. When it begins, you can claim the Amazon settlement in the following steps:
- Visit the settlement website established by Amazon.
- Go to the Submit claim option, fill the form with valid information.
- Now, submit the Amazon claim form on the settlement website.
The claim process may also include the offline claim process, which will be out once the process is established. Class members must keep in mind that the claim process will remain open for a certain period of time; hence, stay tuned and regularly check the Amazon or FTC channels to stay updated.
Disclaimer: Amazon Prime $2.5B settlement info is for awareness; official sources determine eligibility and payouts.
