Amazon Prime Refund: How Millions Could Claim a Share of the $2.5 Billion Settlement
It’s a payday few expected. Amazon is preparing to hand back a massive $2.5 billion after US regulators accused the retail giant of secretly locking shoppers into unwanted Prime memberships and making cancellations a nightmare.
The Federal Trade Commission (FTC) struck the deal following a lengthy investigation into what it called “sophisticated subscription traps”, sneaky tactics designed to sign up customers and keep them paying.
“Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again,” FTC Chairman Andrew N. Ferguson announced.
A Record-Breaking Payout
The settlement is split into a $1 billion civil penalty and a staggering $1.5 billion set aside for refunds. It’s the biggest settlement the FTC has ever achieved and the second-largest refund scheme in US history.
Here’s who qualifies:
- You signed up for Amazon Prime between 23 June 2019 and 23 June 2025, or
- You tried to cancel during that period but couldn’t, and
- You are based in the United States.
Refunds will be capped at $51 per eligible customer. Payments will roll out in two stages, according to the US network CNN.
How does the Amazon Prime Refund work?
Customers who joined Prime through what regulators describe as a “challenged enrolment flow”, such as the Universal Prime page, or shipping option screens.
Prime Video sign-ups, or single-page checkout, and those who used no more than three Prime benefits within any 12 months, will get automatic refunds. Those payouts should land within 90 days of the FTC order.
If you signed up through a challenged flow but used up to 10 Prime benefits in 12 months, you’ll need to submit a claim once the automatic payments have been processed.
Amazon will email and mail instructions within 30 days of the automatic refund phase ending. From there, you’ll have 180 days to send your claim by email, post, or via the official claims website once it goes live.
Amazon Responds
Amazon denies wrongdoing. The company insists its executives “have always followed the law,” but said agreeing to the payout allows it to “move forward and focus on innovating for customers.”
The FTC claims roughly 35 million customers were affected by Amazon’s sign-up and cancellation hurdles.
This settlement is US-only for now. However, it’s a cautionary tale for subscribers everywhere, including the UK, as regulators worldwide keep a close eye on how big tech handles cancellations and recurring charges.
For US customers, check your inbox and postal mail. If you fit the criteria, your Amazon Prime refund could be just weeks away.
