In September 2025, Amazon settled with the Federal Trade Commission (FTC) for $2.5 billion, $1 billion of which was a fine, the other $1.5 billion allocated to refunds to Prime customers, for deceptive enrollment practices and cancellation. This is due to the allegations of Amazon using ‘trap’ sign ups and cancellation processes for their Prime subscriptions. This is estimated to affect 35 million U.S. customers. Each successful claimant is estimated to receive around $51.
Who is Eligible for Refunds?
In order to qualify for the refund, customers need to have signed up for Amazon Prime between June 23, 2019 and June 23, 2025, through one of the “challenged enrollment flows” which include the Universal Prime page, shipping option selection, Prime Video, and single-page checkout. Additionally, customers who attempted but failed to cancel their Prime membership during this time or who only used 3 or fewer Prime benefits in a year also qualify. Refund eligibility also requires U.S. residency.
How will refunds be issued?
Refunds will be processed in automatic or claim-based methods. Automated refunds will be issued without action from the customer first. After the FTC order Amazon will make the payments in 90 days. Those who do not get an automatic refund will fall into the second phase which involves a claim process. Amazon will reach out to customers eligible in this stage via email or letter, sending a claim form, and explaining the process. Amazon will then review the claim and pay the refund in 30 days. Claimants will have 180 days from their receipt.
How do you submit a claim?
There will be claim processes in place after customers get automatic refunds. In this process claim forms will be issued, and customers will get info in the digital and mail channels. As per the FTC’s final order, a claim settlement website will also be provided. Instructions will explain how to fill the claim and submit it. Submission methods include online, email, and regular mail in the 180 day period. It is important to watch the instructions you get in the mail, and keep an eye on your email to complete instructions.
Understanding Your Refund Amount
Despite the maximum individual payout limit being $51, the refund you take will vary from this amount as well. If qualified claimants are more than the available funds, Amazon will refund the amount on a pro-rata basis. In such a situation, everyone will be slightly below the maximum. Refund payments will also depend on what Amazon Prime members within the settlement period paid, so this amount could change your refund as well.
Table: Amazon FTC Refund Data
| Type | Amount | Deadline |
|---|---|---|
| Automatic | Up to $51 | 90 days |
| Claim | Up to $51 | 180 days |
What Comes Next for Prime Members?
Emails and letters should be expected from Prime members about eligibility and details on the claim and subsequent steps. Along with refunding Amazon Prime also revises its subscription practices as instructed by the FTC. Amazon Prime subscriptions will now be transparent and easy for subscribers to cancel.
FAQ
Q1. Who is eligible for the refund?
Refund eligibility applies to U.S. residents who subscribed or attempted to cancel Prime between June 2019 and June 2025 through specific sign-up flows.
Q2. What amount is the refund?
Refund amount is $51 per eligible customer and it will be paid automatically or through claims. If claims are more than available funds, a pro-rata payment will be made.
Q3. How do I submit a claim?
If we do not automatically refund you, we will notify you via email or post within 180 days, instructing you on how to file a claim online or through the mail.
