If you’ve ever been tempted to do so Amazon Prime If your subscription has expired or is almost impossible to cancel, you are not alone. Indeed, the Federal Trade Commission agrees that the process has not been easy. After filing a lawsuit against Amazon in 2023, the retailer was just hit with a huge fine $2.5 billion deal
This historical figure is not just a slap on the wrist. According to the FTC, $1.5 billion will be set aside to reimburse eligible subscribers and the remaining $1 billion will be used for a civil penalty. Although Amazon has not admitted any wrongdoing, it is being forced to make some changes. The deal calls for a “clear and visible” ability to opt out of Prime after payment and, ultimately, an easier cancellation process.
“Amazon and our leaders have always followed the law, and this agreement allows us to move forward and focus on innovation for customers,” said Mark Blafkin, senior director at Amazon. said in a statement. “We work incredibly hard to make it simple and straightforward for customers to sign up or cancel their Prime membership and to deliver significant value to our millions of loyal Prime members around the world.”
Why did the FTC file a lawsuit against Amazon?
The FTC has filed a lawsuit against Amazon, accusing the company of using “shady patterns” to trick people into signing up for Prime memberships and then making it too difficult to cancel. The FTC alleged that Amazon violated Section 5 of the FTC Act. An Act to Restore Confidence in Online Buyers.
“Specifically, Amazon used manipulative, coercive or deceptive user interface designs, known as ‘dark patterns,’ to trick consumers into automatically signing up for and renewing Prime memberships,” the report said. FTC complaint states.
Who is entitled to payment from Amazon?
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 through a “disputed sign-up process” or who signed up for Prime in certain ways but were unable to cancel their membership.
The FTC accessed a number of sign-up pages, including the Prime Video sign-up page, the Universal Prime decision page, the shipping option selection page, and the one-page checkout. Additionally, to qualify for a payment, applicants must have used no more than ten Amazon Prime benefits in a twelve-month period.
Customers who sign up through these advanced processes and haven’t used more than three Prime benefits in a year will automatically receive payment from Amazon within 90 days. Other eligible Amazon customers must file a lawsuit and Amazon must send notices to those individuals within 30 days of automatic payment.
Customers who did not complete the disputed registration process but were unable to cancel their membership must also request payment.
How Much Are Amazon Payments?
Payments to qualified Amazon applicants are limited to a maximum of $51. This amount may be reduced depending on the number of Amazon Prime benefits used when subscribing to the service. These perks include free two-day shipping, watching shows or movies on Prime Video, or discounts on groceries at Whole Foods.
Customers eligible to receive payments must receive them by December 24th. Customers outside the US are not eligible to receive payments.