Amazon Prime Members to Receive Share of $1.5B Settlement with Many Payments Coming

iant and the Federal Trade Commission reached a settlement over claims that Amazon misled customers into enrolling in Prime without their consent.

If you’re wondering what this means for you, here are the key details:

The lawsuit against Amazon was filed by the FTC for enrolling customers in Prime subscriptions without their permission and making it difficult to cancel. While Amazon has agreed to the settlement, they have not admitted any wrongdoing.

A total of $1.5 billion will be allocated for payments to around 35 million affected consumers, with an additional $1 billion as a civil penalty, the largest ever in an FTC rule violation case.

To qualify for a payment, you must have signed up for Prime between June 23, 2019, and June 23, 2025. There are two groups eligible for payments: one group will receive automatic payments by December 25, 2025, if they signed up through specific enrollment methods and used fewer than three Prime benefits. The second group will need to file a claim and show they signed up through the same methods or had trouble canceling, without using more than 10 Prime benefits in a 12-month period.

Amazon will notify qualifying users in the second group when they can file a claim, with a 180-day window to do so. Claims will be processed in 2026.

Additionally, Amazon has agreed to improve practices to protect customers, including making it clearer to customers what they are signing up for and how to cancel. This includes adding a prominent button to decline Prime and ensuring the cancellation process is as easy as signing up.

So, if you were unknowingly signed up for Amazon Prime and meet the eligibility requirements, keep an eye out for notifications from Amazon about your payment. And remember, Amazon is working to make things right and prioritize transparency with its customers.