Amazon to pay reimbursements for ‘duping’ Prime customers from $2.5 billion settlement — Here’s how to claim your $51
Tech giant Amazon is set to pay compensation to customers for ‘impersonating’ them on Prime Video subscriptions and making the cancellation process unclear, after reaching a $2.5 billion settlement over a dispute with the United States Fair Trade Commission (FTC).
According to a Reuters report, $1 billion of the $2.5 billion settlement will be paid to the FTC and the remaining $1.5 billion will be paid to affected customers. Amazon did not admit wrongdoing as part of the settlement.
FTC initiated antitrust lawsuit against Amazon in 2023; where federal authorities alleged that Amazon tricked millions of customers into subscribing to Prime and then made it “extremely difficult” to cancel the membership.
Are you eligible for Amazon’s FTC settlement payment?
According to the FTC, 3.50 crore Prime customers in the US are eligible to receive payments from the $1.5 billion fund. This includes customers who signed up for Prime through select offers between June 23, 2019 and June 23, 2025, according to the report.
The report also noted that each of the affected parties who were shown court documents would automatically receive $51, according to court documents.
How can I claim Prime settlement amount from Amazon?
US-based customers who use Prime benefits three or fewer times in any 12-month period will automatically receive a $51 payment through December 24, 2025, according to a report from USA Today.
The company told the publication that affected parties will receive monetary compensation in lieu of Amazon credits or gift cards processed by a third-party claims administrator.
Once automatic payments are completed, the administrator will send information to other Prime customers who wish to make a request by January 23, 2026. It was added that those who are eligible can submit their request forms until July 23, 2026.
Who are eligible customers?
According to the court order, all Prime customers who signed up for the service between June 23, 2019, and June 23, 2025, and who unsuccessfully attempted to cancel their subscription or signed up for Prime through offers such as free trials or same-day delivery promises, will be eligible for the $51 payment.
Such methods are described in court documents as a “forced registration flow” and include certain pages on the Amazon website, including the “Universal Prime Decision Page, Shipping Option Selection Page, Prime Video registration flow, or Single Page Checkout,” according to the court order.
How did the FTC and Amazon react?
FTC Chairman Andrew Ferguson called the settlement “a record-breaking, monumental win for millions of Americans fed up with deceptive subscriptions that seem impossible to cancel.”
The Reuters report noted that although the case was a definite “win” for consumers and the FTC, the settlement was “relatively painless” for Amazon. That’s because the $2.5 billion settlement is an amount the company sells every 33 hours.
“We are working incredibly hard to make it clear and simple for customers to sign up for or cancel a Prime membership and deliver significant value to our millions of loyal Prime members around the world,” Amazon said.
As part of the deal, Amazon agreed to create a “clear and conspicuous” button that allows customers to decline a Prime subscription and makes it easier to cancel.
Amazon also agreed to explain subscription terms more clearly at sign-up and pay an independent auditor to check for compliance.
(With inputs from Reuters)
