Discover How to Claim Your Share of Amazon’s $2.5 Billion Settlement

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Discover How to Claim Your Share of Amazon’s $2.5 Billion Settlement

Amazon Prime subscribers may be in line to receive compensation as a result of a recent settlement. On September 25, 2023, Amazon reached an agreement with the Federal Trade Commission (FTC) to settle a two-year civil lawsuit. This suit focused on alleged deceptive enrollment practices used by Amazon.

Details of the Settlement

The settlement requires Amazon to pay a total of $2.5 billion. This breakdown includes a $1 billion civil penalty and $1.5 billion dedicated to consumer refunds. The FTC described the settlement as the largest civil suit stemming from a rule violation in its history.

FTC Statement

FTC Chairman Andrew N. Ferguson emphasized the significance of this ruling. He noted that it provides relief for numerous consumers who found cancellation of their subscriptions challenging.

How to Claim Your Share of the Settlement

Eligible Amazon Prime subscribers can claim up to $51 based on their membership fees. The compensation applies to consumers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025. The payment process happens in two phases:

The first group will receive automatic payments within 90 days.
The second group needs to submit a claim form after the initial payout period concludes.

Eligibility Criteria

The first wave of refunds targets subscribers who joined Amazon Prime through problematic enrollment flows and availed themselves of three or fewer Prime benefits within a year. Refunds for this group will be limited to $51.

Allegations Against Amazon

The FTC accused Amazon of misleading consumers into signing up for Prime without their clear consent. This included creating confusing user interfaces that made it difficult for consumers to cancel their subscriptions.

Amazon’s Response

In response to the settlement, Amazon spokesperson Mark Blafkin stated that the company aims to comply with the law. He expressed a commitment to ensuring clarity for customers regarding both signing up and canceling memberships.

As this settlement unfolds, Amazon will be implementing changes to prevent similar issues in the future, focusing on delivering value to its Prime members.