The FTC charged that Amazon made it too hard to cancel
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Settlement could mean $51 refunds for some customers
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FTC says Amazon misled millions into unwanted Prime memberships
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Payout process begins within 90 days
What the case was about
Amazon has agreed to pay $2.5 billion to settle claims that it tricked customers into signing up for Prime and then made it difficult to cancel. The Federal Trade Commission (FTC) said tens of millions of people were affected.
The deal, announced Thursday, came just days into a jury trial in Seattle. It stems from a 2023 lawsuit that challenged how Amazon pitched its membership program to shoppers.
Consumer and privacy groups applauded the deal.Amazons long history of using manipulative design features forcing consumers to give up more money and personal data than they intend has, we hope, finally come to an end, said Sara Geoghegan, Senior Counsel at EPIC, a privacy rights group. Todays settlement underscores what consumers have long known: Big Techs attempt to take more money out of our pockets and to collect more of our personal information by trapping us in subscriptions is illegal and wrong.
Whats in the settlement
The settlement includes $1 billion in penalties and $1.5 billion in payouts to customers. Refunds are expected to average $51 per person. The FTC called it one of the largest settlements in its history.
Amazon, which has more than 200 million Prime members in the U.S., did not admit or deny wrongdoing. The company did not immediately respond to requests for comment.
How to know if you qualify
Within 90 days, Amazon will automatically issue $51 to customers who meet the FTCs criteria. That group includes people who enrolled in Prime but barely used its benefits, such as streaming video.
Other customers may also qualify. Amazon will notify people who can submit a claim if they believe they were signed up by mistake or discouraged from canceling.
Why it matters to shoppers
Prime is a massive business for Amazon, generating more than $44 billion in subscription revenue last year. Prime members typically shop more often and spend more than nonmembers.
The FTCs action shows regulators are putting a spotlight on practices that make it harder for consumers to opt out of subscriptions.
What to do next
If you think you might qualify for a refund:
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Watch your inbox: Amazon will contact eligible customers within 90 days.
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Check your Prime use: If you enrolled but rarely used benefits, you may be in the automatic payout group.
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File a claim if needed: If you believe you were signed up by mistake or discouraged from canceling, look for Amazons instructions to submit a claim.
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Stay alert for : Refunds will only come through Amazon or FTC-approved channels, not random emails or texts.
Posted: 2025-09-25 20:18:27