Amazon Pays Out $2.5 Billion Over Alleged Prime Enrollment Scandal

Amazon is set to pay out $2.5 billion as part of a historic settlement over allegations it enrolled millions of customers in Prime without their consent and made cancellation difficult.

The Federal Trade Commission (FTC) alleged Amazon used 'manipulative, coercive or deceptive user-interface designs' to trick consumers into enrolling in automatically-renewing Prime subscriptions.

Amazon agreed to the massive payout in September 2025, with $1 billion going towards FTC fines and $1.5 billion being divided among eligible claimants based on their total Amazon Prime membership fees paid during their subscription.

Individual payouts are capped at $51 per claimant, and those who did not receive an automatic payment have until July 27, 2026, to submit a valid claim for compensation.