Amazon Settlement: Prime Members to Receive $1.5 Billion
The Federal Trade Commission (FTC) accused Amazon of enrolling customers in Prime subscriptions without their consent and making it difficult to cancel. As a result, Amazon agreed to a $2.5 billion settlement related to these allegations.
Settlement Details
- Amazon Prime users who unknowingly signed up for the monthly service may be eligible for a payment.
- The settlement stems from claims that Amazon “knowingly misled millions of consumers into enrolling in Prime.”
- Despite agreeing to the settlement, Amazon did not admit any wrongdoing.
Money Distribution
The $2.5 billion settlement includes:
- $1.5 billion allocated for payments to about 35 million consumers affected by the issue.
- $1 billion as a civil penalty, which the FTC says is the largest ever for violations of FTC rules.
Eligibility and Payment Process
Payments are available to Prime users who signed up between June 23, 2019, and June 23, 2025. Eligible users fall into two groups:
- The first group will receive automatic payments if they enrolled through a “challenged enrollment flow” and used fewer than three Prime benefits.
“The FTC accused Amazon of enrolling customers in Prime subscriptions without their consent.”
Users in the second group may need to claim their share following specific instructions provided by the FTC.
Author’s Summary: Amazon settles with the FTC over unauthorized Prime enrollments, with $1.5 billion allocated to affected users and record civil penalties imposed.