Amazon has recently agreed to pay a massive $2.5 billion in a settlement with the United States Federal Trade Commission (FTC).
This comes after accusations that the company misled users into signing up for Amazon Prime and made it difficult to cancel.
A portion of the funds will be paid out as refunds to affected Prime subscribers, but who exactly qualifies? This blog explores everything you need to know about the Amazon Prime refund FTC settlement, who’s eligible, how to claim it, and what this means for consumers moving forward.
What Led to the $2.5 Billion FTC Settlement with Amazon Prime?
The Federal Trade Commission filed a lawsuit against Amazon alleging that the company enrolled consumers into its Prime membership without obtaining clear consent.
It also accused Amazon of creating an unnecessarily complicated cancellation process for users who wished to leave Prime.
These practices were said to exploit consumer behaviour using design tactics known as “dark patterns”.
To avoid a drawn-out trial and more extensive penalties, Amazon decided to settle the case with the FTC for $2.5 billion.
Out of this settlement, $1.5 billion will be paid to affected Prime members as refunds, and $1 billion will go to the U.S. government as civil penalties. This is the second-largest settlement the FTC has ever achieved against a single company.
Amazon, while agreeing to the settlement, denied wrongdoing and stated that it is implementing improved sign-up and cancellation procedures for Prime memberships.
How Much Will Amazon Pay and Who Will Receive It?
Amazon’s settlement divides the payout into two main components. The first is the $1.5 billion refund for customers, and the second is $1 billion in civil penalties payable to the government.
Eligible customers can receive a refund of up to $51 per person. The amount of money refunded is linked to the type of Prime membership enrolment and the usage level of Prime benefits.
This case also has a broader impact on how subscription-based businesses handle sign-ups and cancellations. It signals that companies must ensure transparency in online subscription practices.
Who Is Eligible for the Amazon Prime Refund?
The FTC settlement outlines specific criteria for refund eligibility based on how customers enrolled in Amazon Prime and their interaction with cancellation procedures.
Understanding these criteria is essential for determining whether a customer qualifies for a portion of the $1.5 billion refund pool.
Customers Who Signed Up Within the Specified Period
To be eligible, users must have signed up for Amazon Prime between 23 June 2019 and 23 June 2025.
This time window was chosen because the FTC investigation focused on Prime sign-up practices during these years, particularly the use of misleading or unclear interfaces.
Only customers located within the United States are covered by this settlement, as the FTC’s jurisdiction is limited to U.S. consumer protection law.
Individuals in the UK or other international regions are excluded from receiving any part of the refund.
Enrolment Through “Challenged” Interfaces
Eligibility is further limited to those who enrolled through what the FTC refers to as “challenged enrolment flows”.
These are Amazon web or app pages where users may have been misled or not fully informed that they were agreeing to a paid Prime membership. Some of these flows include:
- Universal Prime Decision Page
- Shipping Option Select Page
- Prime Video Enrolment Page
- Single Page Checkout
The FTC argued that these interfaces did not provide sufficient clarity or consent mechanisms, which contributed to users unknowingly subscribing to Prime.
Users Who Tried to Cancel But Couldn’t
Another group of eligible customers includes those who attempted to cancel their Amazon Prime subscription but were unsuccessful.
The FTC considered this a violation of consumer rights because the cancellation process was overly complex and filled with retention tactics.
Examples of failed cancellation attempts include:
- Entering the online cancellation process but failing to complete it
- Accepting a retention offer (such as a discount or free trial extension) without intending to keep Prime
These users are considered eligible because their intent to cancel was obstructed by Amazon’s process design.
How Can You Check If You’re Eligible for the FTC Refund?
For customers wondering if they qualify for a refund, there are a few key steps to take. These steps involve reviewing Amazon account information to determine if your Prime subscription fits within the settlement’s parameters.
Step 1: Review Your Prime Membership Start Date
The first and most important step is to determine when you signed up for Prime. To do this:
- Log in to your Amazon account
- Navigate to “Memberships and Subscriptions”
- Under the Prime section, click on “Payment history” to view the membership’s start date
If your Prime account began between 23 June 2019 and 23 June 2025, you meet the time requirement for eligibility. This date range corresponds with the FTC’s investigative period.
Step 2: Search Order History for Older Transactions
If your Prime membership dates back several years and isn’t shown in the payment history, you can:
- Go to “Your Orders”
- Use the search bar and enter the keyword “Prime”
- Look for any entries related to Prime subscriptions or charges
This method helps to uncover subscription activity that may not appear in the current “Memberships” section.
It’s especially helpful for users who may have previously cancelled or paused their memberships.
Step 3: Recall Any Failed Cancellation Attempts
If you tried to cancel your Prime subscription and were either unsuccessful or diverted by a retention offer, this information may support your refund eligibility.
Although Amazon has not provided a way to track failed cancellations directly, users can refer to:
- Emails acknowledging cancellation attempts
- Retention offers that were accepted during the cancellation process
- Customer service chats or calls related to cancellation
If any of these apply, you could qualify for the second wave of the refund, which requires submitting a claim via a dedicated website.
Step 4: Watch for Refund Notification Emails
Amazon will contact eligible users via email based on their account history. If you’re included in the automatic refund group, you will receive your payment within 90 days.
If you’re part of the claims-required group, you will receive a notification with instructions and a link to file your claim.
To ensure you don’t miss this email:
- Check your primary inbox, spam, and promotions folders
- Ensure your email address linked to Amazon is up to date
- Set up a filter or alert for messages from Amazon or the FTC
By completing these steps, users can confidently determine whether they are entitled to a portion of the $1.5 billion refund under the FTC settlement.
How Will Amazon Distribute the FTC Settlement Refund?
The settlement refunds will be issued in two distinct waves. The first wave targets customers automatically eligible for refunds. The second wave applies to customers who need to submit a claim.
First Wave: Automatic Refunds
Customers who signed up via a challenged enrolment flow and used three or fewer Prime benefits in any 12-month period will receive up to $51 automatically. Amazon must complete these payments within 90 days after the settlement process begins.
Second Wave: Claims Required
Customers who signed up via a challenged enrolment flow or unsuccessfully attempted to cancel their Prime membership, and who used ten or fewer Prime benefits within a 12-month period, will need to file a claim.
Amazon will email these customers a link to a dedicated settlement website within 30 days after the automatic refunds are completed. They then have 180 days to submit their claim.
Summary of Refund Process
| Refund Wave | Eligibility Criteria | Refund Method |
| First Wave | Challenged enrolment, used ≤3 Prime benefits in 12 months | Automatic refund within 90 days |
| Second Wave | Challenged enrolment or attempted cancellation, used ≤10 benefits in 12 months | File claim within 180 days after notification |
What Is a “Challenged Enrollment Flow” and Why Does It Matter?
The FTC identified several sign-up flows that lacked transparency. These included:
- Universal Prime Decision Page
- Shipping Option Select Page
- Prime Video enrolment flow
- Single Page Checkout
Users signing up through these pages often did not understand they were enrolling in Prime. Because of this, enrolment through these flows increases eligibility for a refund under the settlement.
What Should You Do If You Tried to Cancel Prime But Couldn’t?
The FTC defined an “attempt to cancel” as either entering the cancellation process but not finishing it, or accepting a Save Offer during the cancellation process instead of completing the cancellation. If you experienced either of these scenarios, you may be eligible for the second wave of refunds.
It is helpful to document when you tried to cancel Prime, especially if you received retention offers or encountered complicated online prompts. This information can support your claim during the refund process.
How Can You File a Claim for the Amazon Prime Refund?
After automatic payments are distributed, Amazon will send emails to the second group of eligible customers. These emails will include:
- A link to the settlement website.
- Instructions on how to file your claim.
- The deadline for submission, which is 180 days from the date you receive the form.
Claims can be filed in one of the following ways:
- Through the official settlement website.
- By sending the form by email.
- By sending the form by First Class pre-paid post.
Amazon must review claims within 30 days of receipt to decide if they meet the refund criteria.
Table: Claim Submission Details
| Submission Method | Time Allowed | Processing Time by Amazon |
| Settlement Website | 180 days from receipt of form | 30 days after submission |
| Email Submission | 180 days from receipt of form | 30 days after submission |
| Postal Mail (First Class) | 180 days from receipt of form | 30 days after submission |
What Improvements Has Amazon Agreed to Make Moving Forward?
As part of the settlement, Amazon has committed to enhancing its Prime sign-up and cancellation processes. The improvements include:
- Clearer disclosure of terms before customers sign up for Prime.
- A simplified cancellation process with fewer steps.
- Stronger consent requirements before any subscription enrolment.
These changes are designed to comply with U.S. consumer protection laws and prevent similar disputes in the future.
An Amazon spokesperson stated that many of these features have already been introduced, although the company has not admitted to any wrongdoing.
Why Are UK Users Not Eligible for the Refund?
The settlement stems from a case filed by the U.S. Federal Trade Commission, which means it applies only to U.S. residents.
Different jurisdictions have their own consumer protection laws, and UK customers are governed by UK regulations, not U.S. ones.
Even if UK users experienced similar difficulties, they will not receive compensation from this settlement.
This jurisdictional difference highlights the importance of local consumer protections. UK users who face similar subscription issues should instead contact domestic regulatory bodies such as the Competition and Markets Authority (CMA).
What Are the Key Takeaways for Consumers and Businesses?
This case illustrates the importance of transparency and fairness in subscription services. For consumers, it is a reminder to:
- Review subscription terms carefully.
- Track sign-up and cancellation attempts.
- Take screenshots of any issues with online services.
For businesses, the settlement demonstrates that regulatory bodies can and will take action when user consent and clarity are compromised. Subscription models should prioritise ease of use and explicit user consent at all stages.
Conclusion
If you’re a U.S.-based Amazon customer who signed up for Prime or tried to cancel between June 23, 2019, and June 23, 2025, you may be eligible for a refund of up to $51.
The settlement is a major win for consumer rights and marks a significant shift in how companies must treat subscriptions and cancellations moving forward.
Eligible users will either receive an automatic refund or an email notification with claim instructions.
Make sure to check your subscription history and keep an eye on your inbox if you think you might qualify.
FAQs
What is the maximum refund amount I can receive?
The refund is capped at $51 per eligible person, depending on your subscription usage and enrolment method.
Do I need to do anything to get my refund?
If you qualify for automatic refunds, no action is needed. Others will receive an email with a claim form.
How long does it take to receive the refund?
Automatic refunds are expected within 90 days, while claims will be processed within 30 days of submission.
What are Prime benefits and why do they matter for the refund?
Benefits include free delivery, Prime Video, and others. The number of benefits used affects your eligibility for automatic vs. manual refunds.
Can I still qualify if I cancelled my Prime account?
Yes, if your cancellation attempt was unsuccessful or obstructed, you may still be eligible for the refund.
Where will the refund appear?
Refunds will be sent to the original payment method or delivered via cheque or direct deposit, depending on your case.
What if I never received the email from Amazon?
Check your spam or promotions folder. If nothing arrives, visit the official FTC or Amazon refund site when available for updates.
