Amazon agreed to a $2.5 billion FTC class action settlement to resolve claims that the company tricked consumers into signing up for its Prime subscription service and then made it hard to cancel. Amazon will pay a $1 billion civil penalty and provide $1.5 billion in refunds to an estimated 35 million customers.
Who is eligible:
- Customers who signed up for Prime between June 23rd, 2019 and June 23rd, 2025
- Customers who attempted to cancel their Prime membership but couldn’t complete it
Compensation:
-
Up to $51
Required changes:
- Clear, visible option or button to decline Prime (no more “No, I don’t want free shipping”)
- Simple, streamlined cancellation using the same method as sign-up
- Oversight by an independent third party to ensure compliance
- Upfront disclosure of Prime’s cost, auto-renewal, billing, and cancellation terms
Proof needed:
If you used three or fewer Prime benefits within any 12-month period of your subscription. Other eligible consumers will get a notification from Amazon.
