In 2023, the Federal Trade Commission accused Amazon of enrolling tens of millions of customers in Amazon Prime subscriptions without their knowledge and then making it difficult for them to cancel. 

Although it denied any wrongdoing, the retail giant agreed to a record-setting $2.5 billion settlement last week, claiming in a statement that the payout “allows us to move forward and focus on innovating for customers.”

Calling the order “historic,” FTC Chairman Andrew Ferguson said in a release that Amazon “used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”

In addition to paying $1 billion in fines, Amazon agreed to pay $1.5 billion to affected customers and to simplify its cancellation process. 

To qualify for a settlement payout, you must have been signed up for Amazon Prime between June 23, 2019, and June 23, 2025, and tried unsuccessfully to cancel your Prime membership. 

Customers who enrolled for Prime through what court documents called a “challenged enrollment flow” are also eligible.

According to the FTC, that includes any subscriptions started on Amazon’s universal Prime decision page, shipping option select page, Prime Video enrollment flow or the single-page Checkout.

Payments are being divided into two phases: The first wave will be distributed automatically to Amazon customers who used their Prime benefits three or fewer times in a 12-month period. No action is required from these customers to receive payment.

In a second phase starting next year, Amazon customers who used Prime ten or fewer times over any 12-month period will receive payment after filing a claim.

Of the 2.5 billion settlement, $1 billion is earmarked as an FTC fine. The remaining $1.5 billion will be divided among eligible claimants, based on the total Amazon Prime membership fees they paid during their subscription.

However, payouts are capped at $51 per claimant.

Customers who qualify for automatic payments are expected to receive them by Dec. 24, 2025, according to Amazon. Information on how other subscribers can file claims will be released by a third-party claims administrator by Jan. 23, 2026.

Qualified claimants will then have until July 23, 2026, to submit their claim form. Payments will go out after that deadline.

According to a 2025 CNET survey, American consumers spend an average of $90 a month (or $1080 annually) on subscriptions to services like Prime, Hulu and Instacart.

On average, respondents reported spending $17 per month for subscriptions they don’t use, adding up to more than $200 annually.

One way to manage your subscriptions and make sure you’re canceling ones you don’t want is to use a subscription tracker like Rocket Money. It detects and cancels unwanted subscriptions and, for an additional premium, can negotiate subscription refunds on your behalf.

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