Amazon has agreed to a $2.5 billion settlement following accusations that it misled customers into joining its Prime service and made cancellations difficult. The Federal Trade Commission announced the agreement, which includes $1.5 billion in refunds for affected users.
Are you eligible for Amazon settlement refund?
Amazon will pay $2.5 billion (£1.9 billion) in settlement to resolve claims from the US government that it misled millions of customers into signing up for Prime memberships and made cancellations unnecessarily difficult. According to the proposed settlement announced by the Federal Trade Commission (FTC), $1.5 billion of this amount is designated for customer refunds.
The agreement comes just days after a jury trial began in Seattle, and it represents the largest civil penalty ever secured by the FTC. The FTC challenged specific practices, such as checkout pop-ups repeatedly prompting users to join Prime, collecting billing information without fully explaining terms, and trial offers that automatically enrolled customers at the end of the month. The agency said these approaches violated consumer protection laws by making it difficult for users to cancel the service. (via BBC News)
Approximately 35 million people in the US who were affected between June 2019 and June 2025 could qualify for refunds of up to $51. Customers who used Prime benefits fewer than three times during the first year after enrollment will automatically receive a refund. Those who used the service fewer than ten times will need to submit a claim to receive their money.
Amazon is now required to remove misleading prompts, such as buttons labeled “No, I don’t want free shipping.” They also need to implement an accessible method to cancel Prime subscriptions. Amazon spokesperson Mark Blafkin said the company has worked to make signing up and cancelling Prime straightforward. He said, “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.”
Originally reported by Disheeta Maheshwari on Mandatory.
