After Amazon agrees to $2.5B settlement, here’s how to know if you’re eligible
September 25, 2025
After Amazon agrees to $2.5B settlement, here’s how to know if you’re eligible
Amazon said it opted for a quick resolution instead of going through potentially years of trial and appeals.
Amazon has agreed to pay $2.5 billion to resolve a Federal Trade Commission lawsuit alleging the online retail giant tricked customers into signing up for its Prime memberships and made it exceedingly difficult for them to cancel after doing so.
The Seattle-based company will pay a $1 billion civil penalty and give $1.5 billion in refunds to consumers who were harmed by their enrollment practices, the agency said on Thursday.
WATCH HEREThe surprise settlement was announced days after a trial began in U.S. District Court this week. At the center of the case was the Restore Online Shoppers’ Confidence Act, a 2010 law designed to ensure that people know what they’re being charged for online.
FTC officials said the consumer refund amount exceeded even the agency’s expert projections, while Amazon contended it would win the case. However, the company said it opted for a quick resolution instead of going through potentially years of trial and appeals.
Following unexpected news of the settlement, people quickly turned to social media with questions about refunds, including who would be eligible, how much would they receive and when. While some details about the settlement refund process still have to be ironed out, here’s what has been determined so far:
Are you eligible? What to know
According to the FTC, $1.5 billion in refunds will go to an estimated 35 million people who were impacted by “unwanted Prime enrollment or deferred cancellation.”
Some customers will be eligible for automatic refunds of $51, including those who signed up for a membership through a challenged enrollment flow between June 23, 2019, and June 23, 2025, and used no more than three Prime Benefits in any 12-month period, according to court documents.
These customers will be reimbursed within 90 days of the settlement order.
Unsure what a challenged enrollment flow is? They include the “Shipping Option Select Page,” “Prime Video enrollment flow” or “the Single Page Checkout.”
The refund received will total the amount of Prime membership fees paid during the duration of the subscription, capped at $51.
Other Prime users will be eligible, but they won’t receive refunds automatically.
Rather, a second group will need to go through a claims process. To qualify, recipients must have also signed up for a Prime membership through a challenged flow or unsuccessfully tried to cancel their subscription, court filings stated.
To qualify, individuals must not have used more than 10 Prime Benefits during any 12-month period of enrollment.
Once the automatic payouts are completed, a form will be sent to eligible consumers within 30 days. At that time, customers will be able to say if they were unintentionally enrolled or unsuccessfully attempted to cancel their Amazon Prime subscription, according to court records.
Customers will have up to 180 days after receiving the form to submit it to Amazon via electronic mail, First-Class postage pre-paid mail or on the settlement website. Amazon will then receive the claim and determine whether the customer has a valid claim; it’s important to note the company will have 30 days to make the determination.
Those who submit valid claims regarding unintentional enrollment will be refunded the total of Amazon Prime membership fees, also at a maximum of $51.
Under the terms of the agreement, Amazon is required to create a website, which will include further instructions about the settlement.
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