Amazon Prime may promise lightning-fast shipping and countless perks, but according to U.S. federal regulators, millions of customers got more than they put in their shopping baskets. Even more troubling, in some cases they signed up without fully realizing it.
Now the online giant is paying a massive price: a record-breaking $2.5 billion settlement. That includes $1.5 billion in refunds for Prime members and another $1 billion in civil penalties.
The Federal Trade Commission (FTC) says Amazon tricked people into Prime subscriptions and deliberately made it difficult to cancel.
“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription. Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again,” FTC Chairman Andrew Ferguson said in a statement [1].
If you’ve ever struggled to cancel Prime, or wondered why you were suddenly billed for it, this may be your chance to claw some money back. But be mindful there are deadlines involved, so here’s what you need to know.
The settlement covers customers who enrolled in Prime between June 23, 2019, and June 23, 2025.
If you signed up through a “challenged enrollment flow” (in other words, a signup process the FTC flagged as misleading), or if you tried and failed to cancel, you might be in line for a refund.
Refunds will roll out in two waves [2]:
Wave One: Automatic payments
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Covers customers who signed up through a challenged flow and used three or fewer Prime benefits in any 12-month period.
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These customers don’t need to file claims. Amazon will send refunds automatically within 90 days.
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The maximum payout is $51.
Wave Two: Claim-by-form payments
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Covers customers who signed up through a challenged flow or unsuccessfully tried to cancel between 2019 and 2025.
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To qualify, you must have used 10 or fewer Prime benefits in a 12-month period.
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Amazon will notify you and send a claim form within 30 days of the first payout wave. Fill it out quickly as Amazon then has 30 days to review your claim.
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Maximum payout: $51.
What you should know: If you’re in Wave One, your refund shows up automatically. If you’re in Wave Two, you’ve got to act when the form arrives or you’ll miss out.
The FTC isn’t just handing out refunds. It’s also forcing Amazon to clean up its act. The company must now:
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Add a clear ‘No thanks’ button when customers are offered Prime.
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Spell out the real cost and terms of the subscription before you sign up.
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Create a straightforward cancellation process that doesn’t feel like running a maze.
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Hire an independent watchdog to make sure it follows through.
That’s a huge shift for a company that has long been accused of using ‘dark patterns’ to lock in subscribers.
Read more: There’s still a 35% chance of a recession hitting the American economy this year — protect your retirement savings with these 10 essential money moves ASAP
A $51 refund won’t pay the mortgage, but this case shines a light on a bigger money drain: subscription creep.
Consumers underestimate how much they spend on subscriptions by more than $100 a month, according to C+R Research [3]. That’s over $1,200 a year vanishing into streaming platforms, delivery services, apps, and memberships. Often for services people barely use.
Here’s how to fight back:
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Conduct a subscription audit. Pull up your last three credit card or bank statements and flag every recurring charge.
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Cut. Ruthlessly. If you haven’t used a service in months, cancel it. A $15 app or a forgotten gym membership can add up to hundreds per year.
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Track trial periods. Free trials love to flip into paid subscriptions. Put reminders in your phone to cancel before the renewal date.
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Automate the watchdog. Budgeting apps can now track and even cancel subscriptions for you.
Here’s one way to look at it: if Amazon, the most recognizable name in e-commerce, was quietly making billions this way, imagine how many smaller companies are nibbling at your wallet too.
Amazon’s $2.5 billion settlement is historic. But for consumers, the bigger win is a reminder: always watch your recurring charges.
If you had Prime between mid-2019 and mid-2025 and barely used it, you may be owed up to $51. Some refunds will hit automatically, while others require you to fill out a claim form later this year.
Either way, don’t let this moment pass you by. A quick subscription check today could save you far more than Amazon’s payout tomorrow.
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[1]. Federal Trade Commission. “FTC Secures Historic $2.5 Billion Settlement Against Amazon”
[2]. Federal Trade Commission “Federal Trade Commission v. Amazon.com, Inc., et al.: Stipulated order for permanent injunction, monetary relief, civil penalty judgment, and other relief”
[3]. C+R Research “Subscription Service Statistics and Costs”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
