Amazon Agrees to $2.5B Amazon Prime Confusing Cancellation Settlement — Here’s What You Need to Know
September 25, 2025: Amazon has agreed to a $2.5 billion settlement with the FTC over claims that it misled consumers into signing up for Prime and made cancellation confusing.
You May Be Part of a New $2.5B Settlement
You may be part of a new $2.5 billion class action settlement with Amazon over allegations that the company tricked millions of consumers into enrolling in Prime and made cancellation unduly burdensome. The Federal Trade Commission (FTC) announced the settlement publicly on September 25, 2025. (Source: OCA / Medium)
What Is the Total Settlement Amount?
The total settlement is $2.5 billion. Of that amount, $1 billion is a civil penalty paid to the U.S. government, while $1.5 billion is being set aside for consumer refunds to eligible Prime users. (Source: OCA)
How Do I Qualify for a Payout?
To qualify, you must have been enrolled in Amazon Prime (or attempted to cancel) during the period from June 23, 2019 through June 23, 2025. (Source: OCA)
Consumers who were enrolled via a “challenged” signup flow or who tried and failed to cancel may qualify. If, in your first 12 months, you used three or fewer Prime benefits, you’ll qualify for an automatic refund. If you used more benefits, you might still qualify — but you’ll need to file a claim under the settlement terms. (Source: OCA)
How Much Can I Get Paid?
If you fall into the light-usage group (three or fewer benefits used in your first year), you’ll automatically get $51 without taking any action. (Source: OCA)
If you used more benefits or have a more complex case, you can file a claim and the refund amount will depend on how many people file, the proportional allocation of the $1.5 billion consumer fund, and your usage history. The order authorizes payments of up to $51 per eligible consumer (paid automatically or via claim). (Source: OCA)
How Do I File a Claim?
For those eligible for automatic refunds, there’s nothing to do — Amazon will send your refund within 90 days of final approval. (Source: OCA)
If you are not eligible for the automatic refund, Amazon must establish a settlement website and provide a claims form. You’ll be able to submit it online, by mail, or by email once the site is live. (Source: OCA)
What Is the Claim Form Deadline?
A specific date hasn’t been announced. Under the court order, Amazon must complete the settlement program within 16 months of the order. Notices and claim windows will be set and published on the settlement website once approved. (Source: OCA)
What Are the Important Dates?
The relevant enrollment/cancellation window: June 23, 2019 to June 23, 2025 (Source: OCA)
Settlement announced / court order entered: September 25, 2025 (Source: OCA)
Amazon must deposit the $1.5 billion consumer fund within 30 days of the order (Source: OCA)
Automatic refunds are due within 90 days of the order for the first round (Source: OCA)
Settlement website link must appear on amazon.com and the Prime landing page in the first 30 days (Source: OCA)
The entire settlement program must conclude within 16 months of the order (Source: OCA)
When Is the Settlement Payment Date?
Automatic refunds must go out within 90 days of final court approval. For people filing claims, the payment timing will depend on when claims are judged valid, processed, and verified.
Is Proof Required to File a Claim?
You don’t need proof for the automatic refunds. For claims beyond that, Amazon will evaluate submissions against its internal records using the methodology in the settlement order. Submissions may require some documentation, depending on your case. (Source: OCA)
Sources
OpenClassActions / Medium — “Amazon Settles: Breaking Amazon Prime $2.5 Billion FTC Settlement — Do You Qualify for a Payout?”
OpenClassActions — “$2.5 Billion FTC Amazon Prime Settlement. Automatic Refunds and Claims. Who Qualifies and How to Get Paid”