Discover How You Can Claim Part of Amazon’s $2.5 Billion Settlement Over Prime Subscriber Allegations
Amazon has reached a significant settlement of $2.5 billion related to allegations concerning its Prime subscription service. Of this amount, $1.5 billion is designated for consumer payments. The agreement, finalized with the Federal Trade Commission (FTC), arose from complaints that Amazon misled customers about the ease of canceling their Prime memberships.
Settlement Details and Claims Process
According to the FTC’s allegations, Amazon was accused of knowingly confusing customers during the cancellation process, making it difficult to opt out of the automatically renewing subscriptions. A prior investigation revealed that Amazon’s management was aware of these complexities but failed to address them.
If you registered for Amazon Prime between June 23, 2019, and June 23, 2025, you may be eligible for compensation of up to $51. This includes individuals who attempted to cancel their subscription but faced difficulties.
Eligibility Criteria for Payments
- Customers who signed up for Prime during the specified period.
- Individuals who tried to cancel their subscription unsuccessfully.
- Those who remained subscribed after attempting to cancel.
Payments will be disbursed automatically, based on how customers used their Prime benefits. Specific categories impacting the payout include:
- Automatic payments for those who utilized no more than three Prime benefits in their first year.
- Consideration for claims from individuals who used up to ten Prime benefits.
Automatic Refund Timeline
The FTC has indicated that customers do not need to take any action to receive their refunds. Payments are expected to be processed and distributed by December 25, 2025. Amazon has committed to ensuring transparency in its membership and cancellation procedures.
In response to the settlement, Amazon reiterated its dedication to improving the customer experience for Prime members. The company asserts that it remains committed to being clear about the sign-up and cancellation processes while providing substantial value to its subscribers.
