Amazon Prime provides many valuable benefits to its members, but the company's premium subscription sign-up practices between 2019 and 2025 resulted in many customers accidentally signing up for a service they didn't need.
Amazon is now paying the price for this deception: The US Federal Trade Commission has hit the company with a whopping $2.5 billion in damages for its subscription tactics.
Most of the amount—$1.5 billion—was intended to provide refunds to eligible subscribers, with the rest serving as a civil penalty. Amazon is also now required by law to provide a clear and obvious option to opt out of Prime, making it as easy to leave the service as it was to join.
Amazon won't admit to questionable behavior. “Amazon and our leaders have always complied with the law, and this agreement allows us to move forward and focus on innovation for customers,” Mark Blafkin, senior manager at Amazon. says the statement. “We work very hard to make it clear and simple for customers to sign up for or cancel their Prime membership, while also offering significant value to our many millions of loyal Prime members around the world.”
The online retail giant began sending payments to eligible individuals in November and was due to complete its initial automatic payments today, December 24th. Read on to learn more about Amazon's settlement and what to do if you think you're entitled to compensation but haven't received payment.
Why did the Federal Trade Commission fine Amazon?
The Federal Trade Commission has filed a lawsuit against Amazon. accusing the company of using “dark patterns” to push people toward a Prime subscription and then make it harder to cancel. The Federal Trade Commission said Amazon violated Section 5 of the Federal Trade Commission Act and Restoring Online Shopper Confidence Act.
“Specifically, Amazon used manipulative, coercive or deceptive user interface designs known as ‘dark patterns’ to trick consumers into signing up for automatic Prime subscription renewals,” the company said. Federal Trade Commission Complaint stated.
Who is eligible for Amazon payments?
Amazon's legal settlement is limited to customers who signed up for Amazon Prime between June 23, 2019 and June 23, 2025. It is also limited to customers who signed up for Prime using a “disputed sign-up process” or who signed up for Prime in any way but were unable to cancel their membership.
The FTC named specific registration pages including Prime Video registration, Universal Prime Decision page, shipping option selection page, and one-page checkout. To qualify for the payment, applicants must also not use more than 10 Amazon Prime Benefits in any 12 month period.
Customers who sign up through these complex processes and don't use more than three Prime benefits in one year will automatically receive payouts from Amazon within 90 days. Other eligible Amazon customers will need to file a claimand Amazon is required to send notifications to these people within 30 days of making automatic payments.
If you're eligible for automatic payment, you should have received an email from Amazon today explaining how to get your money. You can pay via PayPal or Venmo. If you prefer a paper check, do not accept digital payment. The Federal Trade Commission says Amazon will mail you a check that you must cash within 60 days.
How big will Amazon's payments be?
Payments to eligible Amazon program applicants will be limited to a maximum of $51. This amount may be reduced depending on the number of Amazon Prime benefits you used when you signed up for the service. These benefits include free two-day shipping, viewing shows or movies on Prime Video or discounts on Whole Foods groceries.
Customers eligible for payments should have received them between November 12 and December 24, 2025. If you are eligible for compensation from Amazon but have not received a payment, you will need to file a claim after Amazon begins the claim process. FTC says it will update its Amazon checkout site once that process begins.
Customers who did not use the disputed enrollment process but were instead unable to cancel their Prime membership will also be required to file claims for payment.
