Amazon to Pay $2.5 Billion in FTC Prime Subscription Settlement
Amazon has agreed to a massive $2.5 billion settlement with the Federal Trade Commission (FTC) to resolve allegations of deceptive practices related to Amazon Prime subscriptions. The e-commerce giant, while denying any wrongdoing, will pay up to $1.5 billion in refunds to eligible customers and a $1 billion civil penalty. The FTC accused Amazon of misleading millions into signing up for Prime and making it unnecessarily difficult to cancel, violating the Restore Online Shoppers’ Confidence Act (ROSCA).
Customers who enrolled in Prime from June 23, 2019, to June 23, 2025, and faced challenges canceling online may qualify for payouts ranging from $51 to $200. The settlement initially targeted those who used fewer than 10 Prime benefits in a year, but a federal court expanded eligibility in September 2026 to include customers who used between 11 and 20 benefits. Automatic payments will begin on October 1, 2026, with additional payments possible by April 2027 if Amazon fails to meet certain thresholds.
No action is required from eligible customers; payments will be distributed automatically via check, Venmo, or PayPal. The FTC and Amazon have also agreed to improve subscription transparency and simplify the cancellation process moving forward. Consumers are advised to be cautious of scams related to this settlement and verify any suspicious communications.