Amazon is sending out refunds to some Prime members due to a $2.5 billion settlement with the Federal Trade Commission (FTC). This settlement addresses misleading practices that made it hard to cancel Prime subscriptions.
About the Settlement and Refunds
The FTC accused Amazon of using “dark patterns” to confuse customers. These tricks made it easy to enroll in Prime but difficult to cancel. The company must pay $1 billion as a penalty and provide $1.5 billion in refunds.
Automatic refunds are for U.S. consumers who signed up for Prime from June 23, 2019, to June 23, 2025. However, to qualify, users must have utilized no more than three Prime benefits within a year.
Eligibility for Automatic Payments
Consumers need to know what counts as a “benefit.” The FTC clarified that it refers to total uses, not categories. For instance, using two-day shipping three times qualifies but using ten times does not.
After automatic payments finish, a second claims process will start. Consumers who used between four and nine benefits can file a claim if they enrolled unintentionally or had trouble canceling. Eligible consumers will receive notices by January 23, 2026.
Who Should Consider Filing a Claim
This settlement mainly targets customers who felt misled during the sign-up process. If you think that’s you, start your claim on December 24, 2025, after automatic refunds end.
If you actively use your Prime membership, you likely won’t qualify. Millions of consumers may be eligible for compensation due to the misleading tactics employed by Amazon.
