Amazon offers $2.5 billion settlement for misleading Prime customers how to claim your $51 reimbursement
Amazon has recently announced a major $2.5 billion settlement concerning its Prime Video subscription practices. This comes after charges from the United States Fair Trade Commission (FTC), which accused the company of misleading consumers.
Key Details of the Settlement
As part of the settlement, Amazon will pay $1 billion in fines to the FTC. The remaining $1.5 billion will be allocated for reimbursements to customers affected by the misleading subscription practices.
- Total Settlement Amount: $2.5 billion
- Fine to FTC: $1 billion
- Refunds for Customers: $1.5 billion
Eligible Customers for Reimbursement
The FTC has identified that approximately 35 million Prime customers in the U.S. are eligible for refunds. This includes individuals who enrolled in Prime between June 23, 2019, and June 23, 2025, particularly under certain promotional offers.
How to Claim Your $51 Reimbursement
Customers who used their Prime benefits three times or less within any 12-month period will automatically receive a $51 payout. This payout is scheduled to be completed by December 24, 2025.
- Payout Amount: $51 per eligible customer
- Automatic Payments Date: By December 24, 2025
- Claim Submission Deadline: July 23, 2026
After disbursing automatic payments, Amazon will offer additional instructions for other Prime customers to make claims by January 23, 2026.
Who Is Eligible?
Eligibility includes Prime customers who:
- Subscribed between June 23, 2019, and June 23, 2025.
- Faced difficulties canceling their subscriptions.
- Utilized promotional offers like free trials or shipping guarantees.
Such experiences, termed “challenged enrollment flow,” involve specific pages on Amazon’s website designed for subscription sign-ups.
FTC and Amazon’s Response
FTC Chair Andrew Ferguson hailed the settlement as a significant victory for consumers battling deceptive subscription practices. Amazon reiterated its commitment to making the sign-up and cancellation process clearer for users. They emphasized the introduction of a dedicated button for easily declining Prime subscriptions and a clearer disclosure of terms during enrollment.
This resolution marks a crucial step in protecting consumer rights, as Amazon aims to enhance transparency and reliability in its subscription models moving forward.
