Amazon Prime FTC settlement
$2.5 billion: a $1.5 billion consumer refund fund and a $1 billion civil penalty. source
Federal Trade Commission v. Amazon.com, Inc., et al. 路 2:23-cv-00932-JHC 路 U.S. District Court for the Western District of Washington 路 John H. Chun
Who qualifies
- U.S. Amazon Prime customers who, between June 23, 2019 and June 23, 2025, signed up through one of four challenged enrollment flows: the universal Prime decision page, the shipping selection page, single page checkout or the Prime Video enrollment flow. source
- Or U.S. Prime customers who, in the same period, tried to cancel online and did not finish, or took a save offer by mistake while cancelling. source
- In either case, the customer must have used no more than 20 Prime benefits, such as free shipping or Prime Video, in any 12-month period after enrolling. source
What each group gets
Key dates
- Jun 21, 2023 FTC sues Amazon over Prime enrollment and cancellation source
- May 28, 2024 Court denies Amazon's motions to dismiss source
- Sep 23, 2025 Opening arguments in the jury trial in Seattle source
- Sep 25, 2025 Court enters the $2.5 billion stipulated order source
- Dec 22, 2025 Automatic payments issued to the first group (3 or fewer Prime benefits used) source
- Jan 28, 2026 Claim forms sent to the second group (up to 10 benefits used) source
- Jul 27, 2026 Final date to submit claim forms source
- Aug 30, 2026 Payments begin to everyone in the claims group, whether or not they filed source
- Sep 14, 2026 Judge Chun enters the revised order raising the cap to $200 source
- Sep 15, 2026 Payments issued before June 25, 2026 and not accepted are voided source
- Oct 1, 2026 Automatic payments start for customers who used 11 to 20 Prime benefits source
- Mar 5, 2027 Unaccepted payments from the 11-to-20 round are voided source
- Mar 31, 2027 Amazon reconciles the fund (by the end of March 2027) source
- Apr 30, 2027 Pro rata payments of up to $149 begin (by the end of April 2027) if less than $1 billion has been accepted source
- Sep 10, 2027 Settlement payment program ends source
What the case was about
On June 21, 2023 the Federal Trade Commission sued Amazon in federal court in Seattle under the FTC Act and the Restore Online Shoppers' Confidence Act. It alleged that Amazon used manipulative design, often called dark patterns, to sign shoppers up for auto-renewing Prime memberships without clear consent. Prime was pitched at checkout, buttons to complete a purchase did not always say they also started a recurring subscription, and the option to buy without Prime was often harder to find. The FTC estimated that about 35 million customers were affected by unwanted enrollment or delayed cancellation.
The complaint also targeted cancellation. Amazon's internal name for the online cancellation process was Iliad, after Homer's epic about the long Trojan War. Customers had to find the flow, then click through several pages of discount offers, an option to switch off auto-renewal and a prompt not to cancel. The FTC quoted its complaint: the primary purpose of the process was not to enable subscribers to cancel, but to stop them. It alleged that Amazon leaders slowed or rejected fixes because they hurt the bottom line, and that the company tried to delay the investigation. The FTC also charged several Amazon executives.
The case went to a jury trial in September 2025. Two days after opening arguments, on September 25, Amazon settled for $2.5 billion: a $1 billion civil penalty and $1.5 billion in refunds. Amazon and the executives neither admitted nor denied the allegations, and an Amazon spokesperson said the company had always followed the law. The order requires a clear button to decline Prime, plain disclosure of price, renewal and cancellation terms, a cancellation route as easy as signing up, and an independent supervisor over the refunds.
Getting the money out proved slower than issuing it. Of more than 12.5 million automatic payments worth over $406 million, only about 4.45 million, roughly $146 million, had been accepted at the first supervisor report. In September 2026 the FTC and Amazon agreed to widen the eligible group to people who used up to 20 Prime benefits, make every remaining payment automatic, and raise the cap from $51 to $200 through a final pro rata round. By then Amazon had paid more than $845 million.
The company's full record: Amazon file.
Questions people ask
How much is the Amazon Prime settlement per person?
Earlier rounds refund the Prime fees you paid, capped at $51. If less than $1 billion has been accepted when the fund is reconciled in March 2027, people who accepted a payment can get up to $149 more, with a ceiling of $200 per person in total. source
When will I get my Amazon Prime settlement payment?
Payments for customers who used 11 to 20 Prime benefits started October 1, 2026, and the supplemental round of up to $149 starts by April 2027. The FTC release ties that round to acceptances by February 2027; the court order says the fund is reconciled by the end of March 2027. source
Do I need to file a claim for the Amazon Prime refund?
No. The FTC says payments are sent automatically and no claim form, notice response or filing is needed. The only claim period, for one group, ended on July 27, 2026. source
How do I get the Amazon Prime payment and how long do I have?
Payments come as a mailed check or through PayPal or Venmo, and they expire 60 days after they are issued. source
Is the Amazon Prime refund email a scam?
Amazon, not the FTC, sends the payments. The FTC says it is not contacting anyone about these refunds, and that Amazon will never ask for money to issue one. source
Did Amazon admit wrongdoing in the Prime settlement?
No. Under the stipulated order Amazon and the two executives neither admit nor deny the FTC's allegations, except as stated in the order. source
Status history
- Jun 21, 2023 FTC files its complaint against Amazon over Prime sign-ups and cancellation. source
- Sep 25, 2025 Amazon settles during trial for $2.5 billion; the court enters the stipulated order. source
- Dec 22, 2025 First automatic refunds issued by Venmo, PayPal or mailed check. source
- Jan 28, 2026 Claim forms sent to the second group of eligible customers. source
- Jul 27, 2026 Claim period closes. source
- Sep 14, 2026 Court approves the revised payout order: all further payments automatic, cap raised to $200. source
- Oct 1, 2026 Automatic payments begin for customers who used 11 to 20 Prime benefits. source
Documents
- FTC complaint (June 21, 2023)
- Stipulated order for permanent injunction, monetary relief and civil penalty (Sept. 25, 2025)
- Stipulated order on residual payouts of the redress fund (Sept. 14, 2026)
- FTC Amazon refunds page
- FTC release on the $2.5 billion settlement (Sept. 25, 2025)
- FTC release on additional payments (Sept. 17, 2026)
- FTC case page, FTC v. Amazon.com (ROSCA)
