Get up to $51 from Amazon by joining the $2.5 billion settlement. Here’s how

FTC called settlement affecting Prime users ‘historic’

Amazon customers can now file a claim under its $2.5 billion settlement with the Federal Trade Commission and receive a refund of up to $51.

Last year, Amazon settled with the FTC, which accused the retail giant of misleading millions of users into paying for Prime subscriptions that were intentionally difficult to cancel.

In addition to paying the $2.5 billion settlement, of which $1.5 billion would go to customer refunds, Amazon agreed to “cease unlawful enrollment and cancellation practices for Prime,” the FTC announced in September.

The claims process entered the second phase this week. In the first wave, eligible customers received payments between November 12 and December 24. Now, customers can go to the settlement website to file their claim. While millions of eligible customers will receive a settlement without filing a claim, some will need to submit one.

Amazon admitted to no wrongdoing in the settlement and has insisted it “always followed the law.”

Amazon will pay $2.5 billion to settle Federal Trade Commission allegations that it misled users into paying for memberships that were purposefully difficult to cancel (Copyright 2023 The Associated Press. All rights reserved.)

“We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world. We will continue to do so, and look forward to what we’ll deliver for Prime members in the coming years,” spokesperson Mark Blafkin previously told The Independent.

After the announcement of the settlement in September, FTC Chairman Andrew Ferguson called the agreement a “monumental win” for the agency, noting in a statement the FTC is “committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay.”

“Today we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again,” Ferguson said.

The settlement is one of the largest ever imposed by the FTC, according to CNBC. In 2019, the agency hit Meta, then known as Facebook with a $5 billion fine for violating consumers’ privacy.

Amazon Prime provides subscribers with perks including faster shipping, video streaming, and discounts at Whole Foods supermarkets. The subscription costs $139 a year, or $14.99 a month.

What this means for you

Amazon Prime customers eligible to receive some of the $1.5 billion in redress payments include users who signed up for a membership through the company’s “Single Page Checkout.”

Customers were given the option to use that particular webpage between June 23, 2019, and June 23, 2025.

Under the settlement, Amazon is not allowed to misrepresent the terms of Prime. The company must now make clear disclosures about the terms of the program during enrollment, and have consumers express consent before charging them for a subscription. (The FTC sued Amazon in 2023 over its Prime subscription program)

The $1.5 billion fund will be available to an estimated 35 million users who were hit with unwanted Prime memberships or deferred cancellation, according to Reuters.

To get the settlement, the consumer must have used Prime benefits between three and 10 times over a 12-month period.

Amazon will pay up to $51 to individual Prime subscribers who submit valid claims and could make additional payments.

Affected customers do not need to file claims. Instead, Amazon will send automatic payments to those who used their Prime benefits three times or less during a 12-month enrollment period.

Those who did not receive automatic payments will receive information on how to file a claim by January 23, 2026 and will have until July 23, 2026 to submit the necessary forms.

Amazon will review each claim within 30 days of receiving it, and payments should “follow shortly after approval of your claims form,” according to the settlement website.

The refunds are set to be issued through PayPal, Venmo or mailed checks.

With reporting by the Associated Press.