Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission to refund customers who struggled to cancel their Prime memberships.
Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission to compensate customers who faced difficulties canceling their Prime memberships or were misled by enrollment practices. While the company denied any wrongdoing, it agreed to the settlement to simplify the cancellation process for users. Eligible U.S. consumers who signed up for Prime between June 23, 2019, and June 23, 2025, may receive refunds. The settlement divides eligible members into two groups. Those in the Automatic Payment Group, who used no more than three benefits in a 12-month period and enrolled through a Challenged Enrollment Flow, will receive payments without taking action. Other customers who unintentionally enrolled or struggled to cancel online may receive up to $51 by submitting a formal claim. The Federal Trade Commission warns consumers to avoid scams by only using official channels to claim their refunds. The settlement stands as one of the largest consumer protection agreements involving a technology company.