Amazon has been ordered to pay an eye-watering $2.5 billion in a landmark settlement with the US Federal Trade Commission (FTC).
The case centred on allegations that the retail giant tricked shoppers into signing up for its Prime membership and deliberately made cancelling the service a headache.
The payout is split two ways: $1 billion will go to the US government as civil penalties, while $1.5 billion will be returned to affected customers.
Millions Eligible for Refunds
The FTC estimates around 35 million customers were caught in what it described as “unwanted Prime enrolment” or faced obstacles when trying to cancel.
The agreement is being hailed as a watershed moment, forcing big tech firms to be more transparent about subscription sign-ups and cancellations.
If you’re wondering how to claim your Amazon Prime refund, here’s what you need to know.
Key Dates and Eligibility
Refunds apply to Prime memberships created between 23 June 2019 and 23 June 2025. The maximum payout is $51 per customer.
There are two main groups:
- Automatic refunds: Customers who signed up through a so-called “challenged enrolment flow” and used no more than three Prime benefits in 12 months. No action is needed. Amazon will send payments within 90 days.
- Claims process refunds: Customers who either signed up via these problematic flows or tried to cancel but failed, while using up to 10 Prime benefits, will need to submit a claim. Amazon will send out claim forms within 30 days of completing the automatic refunds. Customers then have 180 days to file their claim.
The FTC highlighted the confusing sign-up methods, citing pages such as the Universal Prime Decision Page, Shipping Option Select Page, Prime Video enrolment flow, and Single Page Checkout as part of the problematic process.
Strong Words From Regulators
Federal Trade Commission Chairman Andrew N. Ferguson said: “Today, the Trump-Vance FTC made history and secured a record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”
“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.”
In its defence, Amazon issued a firm statement: “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.”
“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.
We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years.”
What’s Next?
The first wave of automatic refunds will be paid within three months. Claims forms for the second group will follow, giving customers a six-month window to apply. Amazon will then process claims within 30 days.
Although this settlement stems from a US case, UK Prime subscribers should take note. The move sets a global precedent for clearer cancellation policies and fairer subscription practices.
It also raises awareness for British customers about their own rights when dealing with subscription services.
If you believe you might be eligible for an Amazon Prime refund, keep an eye on your email inbox. Automatic payments will arrive without any action, while claim instructions will be sent directly to those who qualify.
A historic payout. A warning to big tech. And, for millions, a welcome refund.
