As part of a $2.5 billion settlement with the FTC over alleged deceptive Amazon Prime subscriptions, Amazon has not admitted to wrongdoing but has agreed to pay eligible customers up to $1.5 billion. Customers who enrolled in Prime from June 23, 2019, to June 23, 2025, and signed up through one of the challenged enrollment flows or unsuccessfully tried to cancel online during that period may qualify for payouts ranging from $51 to $200.
You do not need to sign up for a class action or submit a claim. The payments will be automatically distributed to eligible Amazon customers.
Why Did the FTC Sue Amazon?
In 2023, the Federal Trade Commission (FTC) sued Amazon and three of its executives, alleging they tricked millions of customers into signing up for Amazon Prime and then made it too difficult to cancel. According to the FTC, Amazon violated the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law protecting people from recurring charges they did not agree to. ROSCA requires companies to (1) clearly explain costs and terms of a subscription; (2) get customers’ permission before billing them, and (3) offer a simple way to cancel the subscription. The FTC claimed that Amazon pushed shoppers toward a “Get FREE Two-Day Shipping” button that signed them up for Amazon Prime subscriptions. However, to cancel the subscription, customers had to sort through four pages, six clicks, and 15 options.
Within a few days of the trial, Amazon agreed to settle the case but admitted no wrongdoing. They agreed to pay $1.5 billion in refunds to about 35 million customers and pay a civil penalty of $1 billion. They must also make the subscription terms clearer to customers and make cancellation easier.
Who Is Eligible to Receive an Amazon Claim Payout?
The initial payout was for U.S. Amazon Prime customers enrolled in Amazon Prime or who tried to cancel during the period from June 23, 2019 to June 23, 2025, and who used fewer than 10 Prime benefits during a one-year period. The expected claim payout was initially $51 per customer. However, in September 2026, a federal court approved the FTC's and Amazon’s joint motion to expand the eligibility requirements so more consumers qualify for refunds. Additionally, the maximum payment cap increased from $51 to $200, and refunds will now go to customers who used between 11 and 20 Prime benefits during a one-year period.
Prime members not included in the first redress payment phase are now eligible for automatic refunds beginning October 1, 2026.
Do I Have to File a Claim with Amazon?
No. Amazon will make automatic payments to customers, so they do not have to submit a claim, complete any forms, or respond to any notices. Customers may receive the payments by check, Venmo, or PayPal.
How Much Can I Receive From the Amazon Settlement with the FTC?
Under the $2.5 billion settlement, the initial payments were $51 per customer. However, if Amazon does not meet the required threshold by February 2027, they will have to make additional payments to customers. Customers who already accepted payments will be eligible to receive an additional $149, making their total payment $200.
When Can I Expect the Amazon Claim Payment?
The automatic payments will begin October 1, 2026. The increased payments will start by April 2027.
Who Do I Contact About My Expected Payment?
If you have not received an expected payment, you can visit the FTC settlement website or contact Amazon directly at admin@SubscriptionMembershipSettlement.com.
Beware of suspicious solicitations from scammers regarding this settlement asking for personal information. If you are wary about a contact made over this payout, you may want to consult with a local consumer protection attorney to see if it is legitimate.
Why Wasn’t I Contacted About this Settlement?
You may be surprised to receive a settlement check from Amazon, especially since you may not have filed a claim. Typically, in large or class action lawsuits, lawyers automatically include class members based on company records or employee or customer lists. You may not be contacted when you are included in the lawsuit, but that way you do not have to go through the claims process or submit a claim form.
