NEWYou can now take heed to Fox News articles!
Amazon has agreed to pay $2.5 billion to settle allegations introduced by the Federal Trade Commission over the way it enrolled prospects in Prime and the way troublesome it made cancellation.
The FTC alleged Amazon enrolled hundreds of thousands of shoppers with out clear consent and failed to supply a easy technique 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,” Federal Trade Commission Chairman Andrew N. Ferguson stated.
Rather than proceed to trial, Amazon selected to settle the case. The firm didn’t admit legal responsibility and says it has already made adjustments to Prime enrollment and cancellation flows. Still, the settlement stands because the second-largest financial judgment ever secured by the Federal Trade Commission.
ALEXA.COM BRINGS ALEXA+ TO YOUR BROWSER
Eligible U.S. Amazon Prime members can now file claims for refunds tied to the FTC’s $2.5 billion settlement. (iStock)
Sign up for my FREE CyberGuy Report
Get my greatest tech suggestions, pressing safety alerts and unique offers delivered straight to your inbox. Plus, you’ll get on the spot entry to my Ultimate Scam Survival Guide – free if you be part of my CYBERGUY.COM publication
How the $2.5 billion settlement breaks down
The court-ordered settlement is split into two elements. First, Amazon should pay a $1 billion civil penalty to the federal authorities. As a outcome, this marks the biggest civil penalty ever tied to a violation of an FTC rule. Second, $1.5 billion is put aside for shopper refunds. Eligible Prime subscribers could obtain compensation for Prime membership charges paid through the coated interval, capped at $51 per individual. Because that is an FTC motion, solely U.S.-based Prime subscribers qualify. Therefore, prospects outdoors the United States aren’t eligible.
Who qualifies for an Amazon Prime refund
You could qualify for compensation if both of the next applies.
- First, you signed up for Amazon Prime in the United States between June 23, 2019, and June 23, 2025.
- Alternatively, you tried to cancel Prime via the web cancellation course of throughout that very same interval however had been unable to finish it. This contains getting into the cancellation movement and never ending or accepting a Save Offer.
To affirm if you joined Prime, log in to your Amazon account. Then go to Memberships and Subscriptions and choose Payment historical past underneath Prime.
How Amazon is issuing refunds
Under the settlement, refunds are distributed in two teams based mostly on eligibility.
Automatic Payment Group
Some shoppers certified for automated funds.
- You had been eligible in the event you signed up for Prime between June 23, 2019, and June 23, 2025, enrolled via a challenged enrollment movement and used not more than three Prime advantages in any 12-month interval.
- Automatic funds had been issued inside 90 days of the court docket order, with most eligible prospects receiving funds by late December 2025. These funds coated Prime membership charges paid as much as $51. No declare was required.
However, in the event you consider you certified for an automated fee however didn’t obtain one, you should still be eligible to file a declare.
Claims Process Payment Group
At this level, the claims course of is the first path for refunds. The claims window opened January 5, 2026. Eligible shoppers are being notified by e-mail or postcard via early February. You could qualify to file a declare in the event you unintentionally enrolled in Prime via a challenged enrollment technique or tried however did not cancel your membership on-line between June 23, 2019, and June 23, 2025, and used fewer than 10 Prime advantages throughout any 12-month interval. In addition, it’s essential to not have already obtained an automated fee. To file a declare, you will have to substantiate one in all two situations by checking a field on the declare kind. Claims are reviewed for eligibility. Approved claims obtain compensation for Prime charges paid, capped at $51 per individual.
The FTC says Amazon used complicated Prime signup and cancellation flows that led hundreds of thousands of customers into undesirable subscriptions. (iStock)
Where to file a Prime settlement declare
If you’re eligible to file a declare, official directions will likely be supplied by e-mail or mail. You can even entry the court-approved settlement website instantly at: subscriptionmembershipsettlement.com.
Links to the settlement website are additionally accessible on Amazon’s web site, the Prime membership web page and inside the Amazon app.
THE WEEK’S BEST AMAZON HOME DEALS: SAVE 40% OR MORE ON PILLOWS, BLENDERS, VACUUMS AND MORE
Even if you don’t qualify for a refund, this settlement is a powerful reminder to evaluate your subscriptions and ensure you’re paying just for providers you actively use. Here’s the best way to cancel a subscription utilizing your iPhone and Android.
“Payments are being handled by the settlement administrator. Customers can find information and submit claims at the administrator’s website subscriptionmembershipsettlement.com,” an Amazon spokesperson informed CyberGuy.
How so as to add or handle your Amazon Prime account
Take my quiz: How protected is your on-line safety?
Think your gadgets and information are really protected? Take this fast quiz to see the place your digital habits stand. From passwords to Wi-Fi settings, you may get a customized breakdown of what you are doing proper and what wants enchancment. Take my Quiz right here: Cyberguy.com.
Kurt’s key takeaways
Overall, this settlement sends a transparent message about subscription transparency. While a $51 refund could really feel modest, the broader affect issues. Regulators are forcing firms to simplify signups and make cancellations simpler. If you ever felt trapped in a subscription you didn’t intend to begin, this case exhibits enforcement is lastly catching as much as misleading design techniques.
The declare kind exhibits the place to seek out your Claim ID and PIN, that are required to file for an Amazon Prime settlement refund. (iStock)
Have you ever tried to cancel a subscription and felt blocked or misled alongside the way in which? Let us know by writing to us at Cyberguy.com.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Sign up for my FREE CyberGuy Report
Get my greatest tech suggestions, pressing safety alerts and unique offers delivered straight to your inbox. Plus, you’ll get on the spot entry to my Ultimate Scam Survival Guide – free if you be part of my CYBERGUY.COM publication.
Copyright 2026 CyberGuy.com. All rights reserved.
Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of expertise, gear and devices that make life higher along with his contributions for Fox News & FOX Business starting mornings on “FOX & Friends.” Got a tech query? Get Kurt’s free CyberGuy Newsletter, share your voice, a narrative thought or remark at CyberGuy.com.
