Overview
- The settlement, announced in September 2025, splits $2.5 billion into $1.5 billion for affected customers and a $1 billion civil penalty paid to the Federal Trade Commission.
- The FTC alleged Amazon used misleading enrollment pages and made cancellations hard to complete, citing internal company documents that discussed those problematic flows.
- Consumers who did not get an automatic refund must file a claim on the official settlement site by Monday, July 27, 2026, to be considered for payment.
- Claimants who qualify can receive reimbursement of Prime fees up to $51, with automatic payments already sent to very low-usage accounts and remaining approved claims expected to be paid in late 2026.
- The settlement forces Amazon to add clearer disclosures and an explicit decline/cancel button, Amazon denied liability, and the FTC and administrator warn consumers to use only the official portal and ignore unsolicited refund contacts.