Amazon Agrees to $2.5 Billion Settlement over Prime Subscription Practices

A $2.5 billion settlement between Amazon and the Federal Trade Commission (FTC) will see over 35 million people in the United States eligible for a refund on their Amazon Prime subscriptions.

The FTC accused Amazon of using 'deceptive methods' to enroll customers in its Prime subscription service without their consent, with evidence showing that Amazon used 'sophisticated subscription traps designed to manipulate consumers into enrolling in Prime.'

According to the FTC, $1.5 billion of the settlement will be paid directly to customers, who must have lived in the United States and signed up for Amazon Prime or attempted to cancel their subscription between June 23, 2019, and June 23, 2025.

The refunds are capped at $200 and will be sent out in two waves. The first group will receive automatic payments within 90 days of the FTC order, while the second group must file a claim through Amazon's website or app.