Amazon to pay $2.5 billion settlement to Prime users
Eligible Amazon Prime users can claim refunds up to $51 following a settlement.
Amazon's $2.5 billion settlement
Automatic payments for some users
Claim process for others
Eligibility based on subscription dates
Refund amount based on total fees
Changes to Amazon's website required
Amazon will distribute up to $51 in cash refunds to qualifying Prime members under a historic $2.5 billion settlement approved on September 25, 2025. The agreement resolves FTC allegations that Amazon used misleading enrollment flows and made cancellations excessively difficult.[1][2][3]
Background of FTC Lawsuit and Summary Judgment Findings
In 2023, the Federal Trade Commission sued Amazon for violations of Section 5 of the FTC Act and Section 4 of the Restore Online Shoppers’ Confidence Act (ROSCA). Regulators alleged that Amazon used “dark patterns” to enroll customers in automatically renewing Prime subscriptions and obstructed cancellation efforts. On September 17, 2025, a U.S. District Court granted summary judgment finding Amazon obtained billing information before disclosing all material terms, in violation of ROSCA.[3][4][5][6]
Amazon settled to avoid trial without admitting wrongdoing. The settlement requires Amazon to pay a $1 billion civil penalty to the U.S. government and allocate $1.5 billion for customer refunds, under oversight by an independent Claims Supervisor.[6][1][3]
Detailed Eligibility Requirements and Definitions
Members must satisfy all of the following to qualify for a refund:
Enrollment Window
Prime sign-up between June 23, 2019 and June 23, 2025.[7][8][3]
Qualifying Circumstances
Enrolled via a “challenged flow”: Universal Prime Decision Page, Shipping Option Select Page, Prime Video flow, or Single Page Checkout; OR[8][3][7]
Attempted and failed to cancel Prime during the period.[3][7][8]
Benefit Usage Limit
Automatic eligibility applies if three or fewer Prime benefits were used in any 12-month span.[9][10][8]
“Prime benefits” include features such as Prime Video, Prime Music, and member deals; expedited shipping that would have been free without Prime is excluded.[6]
Refund Amount Cap and Distribution Timeline
Every eligible member’s refund is calculated based on total Prime fees paid, with a maximum of $51 per person. Distribution follows two paths:[2][1][3]
Automatic Refunds
– Criteria: Challenged-flow enrollment and low-usage (≤ 3 benefits)
– Delivery by December 24, 2025 via direct deposit or check
– No claim form required[10][2][8]
Claims-Required Refunds
– Criteria: Four to ten benefits used or unsuccessful cancellation attempt
– Claims forms sent by mail and email by January 23, 2026
– Submission deadline: July 23, 2026
– Amazon review period: 30 days per claim
– Pro-rata reduction if valid claims exceed $1.5 billion[3][6]
Table of Key Dates and Actions
Action
Date
Settlement approval
September 25, 2025
Automatic refund deadline
December 24, 2025
Claims form distribution
By January 23, 2026
Claims submission deadline
July 23, 2026
Claim review period
30 days after submission
Required Amazon Policy and Website Changes
Under the court order, Amazon must implement:
Clear disclosure of all Prime terms before payment data entry.[1][6][3]
A distinct “No, thanks” option on all Prime sign-up pages.
A streamlined, straightforward cancellation process.
Prominent display of pricing and auto-renewal notices.
An independent Claims Supervisor will oversee Amazon’s compliance and fund distribution.
Prime Membership Pricing Overview as of October 2025
Monthly subscription: $14.99
Annual subscription: $139
Benefits: Two-day shipping, Prime Video, Prime Music, member deals, partner discounts[11][12][13][3]
Areas Requiring Further Information and Alert
Some settlement details are not yet publicly available. Readers should monitor official FTC and Amazon communications for updates:
Name and contact details of the third-party claims administrator
Official settlement website URL and submission portal
Exact counts of members eligible for automatic refunds versus those required to file claims
Full description of the Claims Supervisor’s reporting and enforcement powers
These details will be added once announced by the court-appointed oversight team. Always verify communications against official FTC press releases and court filings.
Alex Chen is a senior technology journalist with a decade of experience exploring the ever-evolving world of emerging technologies, cloud computing, hardware engineering, and AI-powered tools.
A graduate of Stanford University with a B.S. in Computer Engineering (2014), Alex blends his strong technical background with a journalist’s curiosity to provide insightful coverage of global innovations.
He has contributed to leading international outlets such as TechRadar, Tom’s Hardware, and The Verge, where his in-depth analyses and hardware reviews earned a reputation for precision and reliability.
Currently based in Paris, France, Alex focuses on bridging the gap between cutting-edge research and real-world applications — from AI-driven productivity tools to next-generation gaming and cloud infrastructure. His work consistently highlights how technology reshapes industries, creativity, and the human experience.
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Used tables and lists to simplify eligibility and timelines.
Verified all figures and dates with the Sept 25, 2025 court order.
Cross-checked details against FTC releases and credible outlets.
Incorporated official definitions and terminology from settlement text.
Flagged pending details with a transparent alert box.
Maintained neutral, factual tone free from hype or bias.
Highlighted record FTC penalty and independent oversight roles.
— by Howayda Sayed
Initial publication.
Correction Record
Accountability
— by Howayda Sayed
Highlight Historical Significance: Note that this is the largest civil penalty under FTC rules and one of the largest consumer restitution funds.
Clarify Benefit Exclusion: Reiterate that free shipping—if otherwise available without Prime—is not counted as a “Prime benefit”.
Detail Independent Oversight: Describe the Claims Supervisor’s role in audits, reporting, and compliance checks once information is released.
Include Scam Prevention Advice: Advise readers how to identify and avoid fraudulent sites and communications.
Explain Pro-Rata Mechanism with Example: Provide an illustrative scenario once claim demand data emerges to show potential payment adjustments.
Publish Official Portal Information Promptly: Add the actual settlement website link and submission instructions when available.
Provide Data on Automatic vs. Filed Claims: Break down the number of members in each group to help readers anticipate their path.
Offer Privacy Assurance: Explain how personal data submitted in claims will be protected under the settlement terms.
Include Timeline Visualization: Consider a simple chart to map out key deadlines for visual clarity.
Monitor Post-Settlement Developments: Update article with actual refund distributions and compliance reports once filed.
FAQ
Who will be appointed as the Claims Supervisor to oversee Amazon's compliance with the settlement terms?
The court has not yet appointed or named the independent Claims Supervisor; their identity and contact information will be published in a forthcoming FTC order once finalized.
What specific technical features did Amazon use in their “dark patterns”?
According to the FTC complaint, Amazon employed pre-selected checkboxes during checkout, concealed opt-out links behind layered menus, and implemented multi-step cancellation processes that delayed or deterred unsubscribing.
Where can international Amazon customers or those outside the U.S. seek similar compensation?
This settlement applies only to U.S. Prime accounts; international customers affected by misleading enrollment or cancellation flows would need to pursue remedies through their local consumer protection agencies or private legal actions.
When will the official settlement website and claims portal become available for those requiring manual submissions?
The official settlement website and claims portal will be announced by the FTC and Amazon after final court approval, likely several weeks before the January 23, 2026 claims-form distribution deadline.
Why did Amazon executives face personal liability in this case when corporate settlements typically shield individual executives?
No individual executives were held personally liable; the settlement imposes civil penalties and refund obligations on Amazon.com, Inc. alone, without extending liability to company officers.
