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Reading: Amazon Settles $1.5 Billion FTC Case, Prime Members to Claim Refunds
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Finance

Amazon Settles $1.5 Billion FTC Case, Prime Members to Claim Refunds

News Desk
Last updated: September 25, 2025 10:29 pm
News Desk
Published: September 25, 2025
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Amazon May Owe You Money Gear 2234419194

Amazon customers with Prime subscriptions will soon have the opportunity to claim a portion of the $1.5 billion refund mandated by a settlement with the U.S. Federal Trade Commission (FTC). This settlement comes in response to allegations regarding Amazon’s deceptive enrollment practices for its Prime service. According to a press release from the FTC, the total settlement amount is $2.5 billion, which also includes a $1 billion penalty to be paid to the government.

An Amazon spokesperson clarified that while the company settled, it did not admit to any wrongdoing. Alisa Carroll stated that the settlement primarily requires Amazon to continue with its existing sign-up and cancellation processes, rather than implement significant changes. “We will comply with the settlement’s decision,” Carroll added.

The criteria for eligibility in this payout are based on two significant factors. First, the settlement encompasses U.S. customers who enrolled in Prime through a “Challenged Enrollment Flow” between June 23, 2019, and June 23, 2025. This includes various enrollment pages such as the Universal Prime Decision Page, the Shipping Option Select Page, the Prime Video enrollment flow, or the Single Page Checkout. For many users, if enrollment didn’t occur directly through the Prime subscription site, they likely encountered a series of prompts that could fall under this definition.

The second group eligible for claims consists of Prime customers who initiated the cancellation of their subscription but did not complete the process during the same six-year timeframe. This ruling notably includes those who may have found the cancellation process frustrating or who accepted a “Save Offer” to extend their membership benefits.

Customers who find themselves in either of these categories are entitled to claim funds from the settlement, and it’s not necessary to qualify under both criteria to participate. Individuals may receive up to $51, depending on eligibility.

While not all eligible customers will have to file a claim to receive their share of the settlement, some may get automatic payments within the next 90 days. According to FTC spokesperson Christopher Bissex, those who qualify will receive notifications from Amazon detailing the next steps. Specifically, subscribers who have utilized three or fewer Prime benefits within a year may be among those to receive automatic payments, while more frequent users will need to submit a claim.

Details regarding the definition of a “benefit” remain somewhat unclear, but further updates are anticipated as the process unfolds. Previous settlement experiences, such as the FTC’s case against Equifax, have often allowed eligible individuals to claim their funds through dedicated websites set up for this purpose. As this situation develops, more information will be provided to guide impacted customers through the claiming process with Amazon.

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