Amazon started issuing refunds to eligible Prime members as part of a $2.5 billion settlement over misleading customer practices.
FTC lawsuit against Amazon filed in 2023
Settlement reached on September 25, 2025
$1.5 billion allocated for customer refunds
Refunds started on November 12, 2025
Eligible customers can receive up to $51
Claims for non-receivers start in 2026
Be wary of refund scams
Amazon has commenced issuing refunds to eligible Prime subscribers as part of a $2.5 billion FTC settlement, and Amazon begins refunds under this agreement as amazon prime refunds move forward. The FTC settlement resolves allegations that Amazon misled consumers and made cancellation difficult, making these prime refunds a major step in compliance. [1][2][3]
Comprehensive Overview of the Settlement Terms and Legal Context
The settlement requires Amazon to pay $1 billion in civil penalties and $1.5 billion in consumer refunds.
The FTC alleged Amazon violated the FTC Act and Restore Online Shoppers’ Confidence Act (ROSCA) by employing deceptive enrollment interfaces and difficult cancellation procedures.
Internal Amazon documents revealed awareness of these practices by company executives, describing some tactics as “a bit of a shady world” and “an unspoken cancer”.[4]
Amazon agreed to redesign subscription flows to include clear opt-out buttons, transparent pricing and terms, and easy cancellation methods that match the original signup method.
The company will be monitored by an independent third party for compliance.[5]
Have enrolled in Amazon Prime between June 23, 2019, and June 23, 2025.
Have subscribed or attempted to cancel via specific “challenged enrollment flows,” such as the Universal Prime Decision Page, Shipping Option Select Page, Prime Video enrollment, or Single Page Checkout.
Have used no more than three Prime benefits in any 12-month period after enrollment.[7][6]
Aspect
Detail
Total Settlement Amount
$2.5 billion
Consumer Refund Fund
$1.5 billion
Civil Penalties Paid to FTC
$1 billion
Eligible Subscription Period
June 23, 2019 – June 23, 2025
Enrollment Flow Condition
Challenged flows including major Amazon Prime signup pages
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.
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