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Oct 20,:2025
Amazon is set to return billions of dollars to U.S. customers following a historic settlement—and you might be eligible for a payout. The retail giant has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegedly deceptive Prime subscription practices. Of that total, $1.5 billion will go directly to affected users between 2019 and 2025.
This could result in automatic refunds for millions of Prime members who struggled to cancel their subscriptions, making it one of the largest consumer settlements in history.
What’s Behind the Amazon Settlement?
The FTC accused Amazon of using “sophisticated subscription traps”, also called dark patterns, designed to make it confusing and time-consuming to cancel Prime.

From June 2019 to June 2025, over 35 million users were reportedly affected. The investigation revealed that Amazon allegedly used misleading layouts, unclear buttons, and multiple confirmation steps—practices that prevented many from canceling their memberships and led to this landmark settlement.
Who Qualifies for a Refund?
Eligibility is straightforward. You may qualify if:
- You signed up for Amazon Prime in the U.S. between June 23, 2019, and June 23, 2025
- You tried to cancel your Prime membership during that period and faced unnecessary roadblocks
If either applies, you could receive money back—automatically or by submitting a claim once the FTC launches its refund system.
Automatic Refunds: No Action Needed
Some users won’t need to file a claim. The FTC arranged automatic payments for those most likely to have been misled.
Automatic refunds will go to customers who:
- Used three or fewer Prime benefits (like free shipping or Prime Video) during their first year
- Signed up from flagged pages, such as checkout or Prime Video screens, where the process may have been unclear
Payout: Up to $51, equivalent to one year of Prime membership. Payments are expected within 90 days of the FTC’s final approval.
| Refund Type | Eligibility Criteria | Maximum Amount |
|---|---|---|
| Automatic Refund | ≤3 Prime benefits, signed up from flagged pages | $51 |
| Manual Claim | All other eligible Prime users | Varies |
Manual Claims: How to Get Your Refund
If you’re not in the automatic group, you can still claim your money. Amazon will soon launch an official claims website.
- You’ll have 180 days from the notice to submit your request
- Refunds may be reduced proportionally if claims exceed expectations
- Even partial compensation is possible if the full $51 isn’t available
Tip: Check your Amazon account and email regularly for refund notifications.
Amazon Responds
Amazon denies wrongdoing, claiming that Prime sign-up and cancellation processes are “clear and simple.”
“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership,” the company said.
For the FTC, this is a historic win, marking its largest settlement ever and sending a strong message to tech companies using manipulative design tactics.
Why This Matters
Other subscription services—like Uber One and streaming platforms—have also faced scrutiny for making cancellations unnecessarily complex. The FTC’s settlement could pave the way for more consumer protections online.
What You Should Do Next
If you’ve been a Prime member—or tried to cancel—between 2019 and 2025:
- Check your email or Amazon account for refund notifications
- If you used ≤3 Prime benefits, you may get an automatic refund—no action required
- Otherwise, submit a manual claim once the official website opens
- Don’t ignore the notice—you’ll have 180 days to file
Even if your refund isn’t huge, it’s worth claiming. Millions were affected, and this settlement is a reminder that consumer transparency matters.
FAQs
Q1: Why is Amazon issuing refunds?
The FTC said Amazon made cancellations confusing, leading many to stay subscribed against their wishes. The $2.5 billion settlement compensates affected users.
Q2: Who qualifies for an automatic refund?
If you used three or fewer Prime benefits and signed up from flagged pages (checkout or Prime Video), you may receive automatic reimbursement.
Q3: How much can I get back?
Automatic refunds could reach $51. Manual claims may vary depending on total submissions.
Q4: Do I need to do anything?
Not for automatic refunds. If you’re not in that group, you’ll need to file a claim when the official site goes live.
Q5: When will refunds be paid?
Payments are expected within 90 days of the FTC’s final approval.
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