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. Amazon Prime users who were unknowingly signed up for the monthly service may qualify for payments as part of a $2.5 billion settlement.
Background of the Settlement
The FTC and Amazon agreed on a settlement following claims that the company violated FTC regulations by “knowingly misleading millions of consumers into enrolling in Prime.” Amazon was also charged with making it difficult to cancel subscriptions. Despite agreeing to the settlement, Amazon did not admit any wrongdoing.
Settlement Details
- $1.5 billion is allocated for payments to an estimated 35 million affected consumers.
- $1 billion is a civil penalty, which the FTC states is the largest ever for a case involving an FTC rule violation.
Eligibility and Payment Process
Payments are available to Prime users who signed up between June 23, 2019, and June 23, 2025.
There are two groups of eligible users:
- The first group will automatically receive payments if they enrolled through a “challenged enrollment flow” and have used no more than three Prime benefits.
“The FTC accused Amazon of enrolling customers in Prime subscriptions without their consent.”
This case highlights the importance of transparent subscription practices.
Author's summary: Amazon will pay $1.5 billion to millions of Prime users unknowingly enrolled, settling FTC allegations of deceptive subscription tactics without admitting guilt.