A settlement that could put money in your pocket
If you’ve ever signed up for Amazon Prime and later felt stuck trying to cancel, you’re not alone. The Federal Trade Commission (FTC) accused Amazon of making it confusing for customers to cancel Prime memberships while still enrolling millions of people, sometimes without them fully realising it.
Now, Amazon has agreed to a $2.5 billion settlement that includes both fines and reimbursements. This is one of the largest consumer settlements in FTC history, and it means real money could be heading to millions of Americans. The big question is—are you one of them?
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How the payout works
Out of the $2.5 billion, $1.5 billion will go directly to Prime customers. Around 35 million people could be eligible. That’s a lot of people, so let’s break it down simply.
If you signed up for Prime between June 23, 2019, and June 23, 2025, through certain offers, and you barely used the Prime benefits afterward, you could automatically receive $51. You don’t even need to file a claim if you meet the automatic eligibility rules.
But what if you tried to cancel Prime during that time and found the process impossible? You might still be eligible to file a claim and get reimbursed. The settlement makes sure customers who struggled to cancel also have a shot at money-back.
Why the FTC went after Amazon
The FTC accused Amazon of using what are sometimes called “dark patterns.” That’s just a fancy way of saying the company made things intentionally tricky.
For example, Amazon would promote free trials with slogans like “Get FREE Same-Day Delivery” but not clearly tell people that by clicking that option, they were signing up for Prime. Later, when customers wanted to cancel, the FTC said Amazon buried the cancel button under a maze of menus.
Emails and discussions inside Amazon even described the sign-up and cancellation system as “a bit of a shady world.” That’s the kind of evidence that pushed the FTC to act.
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What Amazon has to change
As part of the deal, Amazon has to clean up its act. The company agreed to:
- Add a clear button that lets customers decline Prime when signing up.
- Make it much easier to cancel with fewer steps.
- Clearly show the cost and terms of Prime during enrollment.
- Pay for an independent monitor to make sure it follows the rules.
The interesting part is that many of these changes were already in place by 2022, when Amazon knew the FTC was investigating. So, while the settlement makes them official, the company claims it was already moving in that direction.
Why this matters for you
The biggest takeaway is that you might be owed money if you signed up for Prime during the time period mentioned. That $51 payment might not sound like much, but it’s a rare case where an FTC settlement is putting actual cash in consumers’ hands.
Even if you don’t qualify, this settlement is still a win for all Prime members. Why? Because the sign-up and cancellation process should finally become straightforward. No more hidden menus, no more endless clicking just to get out.
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The bigger picture
This isn’t just about Amazon. The FTC has been cracking down on subscription services across the tech world. Companies like Amazon, which make billions from recurring subscriptions, now have to be more transparent with their customers.
And make no mistake—Prime is still a powerhouse. It has more than 200 million members worldwide and brings in billions each year. Even a $2.5 billion payout is barely a dent in Amazon’s bottom line. To put it in perspective, the company makes that much in about 33 hours of sales.
What happens next
The settlement was reached just as the FTC’s lawsuit against Amazon was about to go to trial. By settling, Amazon avoids more bad publicity and years of court battles. For you, that means the process of sending out payments can begin sooner rather than later.
The FTC will share details about how customers can check their eligibility and submit claims. If you meet the automatic criteria, you won’t even have to lift a finger. The money will come to you.
