Edgar Cervantes / Android Authority
TL;DR Amazon will pay $2.5 billion to settle FTC claims over Prime signups and cancellations.
The FTC said Amazon “tricked and trapped” people into recurring subscriptions.
People who signed up for Prime in the US between June 23, 2019, and June 23, 2025 could be eligible for a payout.
With Amazon’s next Prime sale just weeks away, the company could have done without the headlines its subscription service is making today. Amazon just agreed to pay $2.5 billion to settle claims it made Prime signups too easy and cancellations too hard.
As reported by The New York Times, the settlement came just days into a Seattle jury trial stemming from a 2023 Federal Trade Commission lawsuit. Regulators accused Amazon of steering people into Prime memberships during checkout by highlighting free shipping perks while playing down the cost, and then making it difficult to leave with a cancellation process that involved multiple screens and pressure offers.
Internally, Amazon even referred to that cancellation flow as Iliad, after the famously long Greek poem. FTC chair Lina Khan summed it up by saying the company had “tricked and trapped people into recurring subscriptions without their consent.”
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The settlement includes $1 billion in penalties and $1.5 billion in customer payouts, which works out to about $51 each if you qualify. The FTC said it’s one of the largest settlements in its history. Amazon admitted no wrongdoing as part of the settlement, saying that it had already simplified the cancellation process and that Prime signups are clear.
Do I qualify for a payout? As outlined in the court order, you could be eligible if you signed up for Prime in the US between June 23, 2019, and June 23, 2025. This includes anyone who was nudged into a membership during checkout or anyone who tried to cancel online but didn’t finish the process, maybe giving up along the way or accidentally clicking one of Amazon’s retention offers.
If you qualify, there are two ways money could come your way. Some customers will get an automatic refund if they used no more than three Prime benefits after enrolling, with payments capped at $51. This should be sent within 90 days.
Anyone who used no more than ten Prime benefits will be invited to fill out a claims form. Amazon has to email and mail you, plus post a link on a special settlement website, so you’ll have no problem finding your form. You could also get back up to $51. You’ll have up to 180 days to respond, and an independent supervisor will monitor the refund process to ensure Amazon follows through.
Prime is central to Amazon’s business. Roughly 200 million people in the US subscribe, and the program brought in more than $44 billion last year through membership fees alone. Prime customers also shop more frequently than non-members, making them the company’s most valuable shoppers.
The timing is awkward. With Prime Big Deal Days coming up on October 7 and 8, Amazon will be urging more people to start or restart a trial. We’ll be highlighting some of the best tech deals during the event, but if you’re only signing up for the discounts, you might want to set a reminder to cancel afterwards.
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