The internet is full of scam sites looking for a way to swindle you out of your money and data. Consumers are told to only use verified sites run by businesses that are considered legitimate and safe. So, one would assume that big-name sites such as Amazon would be both consumer-friendly and that there is nothing potentially dodgy to look out for. However, it turns out that even the biggest sites often use various tactics that make people unwittingly subscribe to services and make it difficult for them to opt out. The Federal Trade Commission recently accused Amazon of doing just that, and the company will now have to pay out $2.5 billion to its affected customers. Read further below to find out if you are eligible for the Amazon Prime settlement refund.
Are You Eligible for the Amazon Prime Settlement Refund?
According to Andrew N. Ferguson, the FTC Chairman, their evidence showed that the giant e-commerce company had used complex subscription traps that were specifically designed to coerce consumers into enrolling in Prime. They also found that the company made it very hard to cancel their subscriptions. “Today, we are putting billions of dollars back into Americans’ pockets, and making sure Amazon never does this again. The Trump-Vance FTC is committed to fighting back when companies try to cheat ordinary Americans out of their hard-earned pay,” said Ferguson in a statement.
The FTC considers this a historic win, with the settlement including a $1 billion civil penalty in addition to $1.5 billion in refunds to all affected customers. So, how do you know if you are eligible for the Amazon Prime settlement refund? Well, you could be eligible if you meet the following criteria. You need to have signed up between the 23rd of June, 2019, and the 23rd of June, 2025. During that period, you tried to cancel your Prime subscription, but were unsuccessful. You also need to be based in the United States. The payments are reportedly paid in two waves and are capped at $51 per customer.
Payouts will automatically be made to those who signed up for Prime through a “challenged enrollment flow”. This includes the shipping option select page, the Universal Prime page, Amazon’s single page checkout, or Prime Video. Customers must also not have used more than three Prime benefits within any 12-month period. Additionally, those who tried to cancel Prime during that period, but had no success, will need to submit a claim form after the completion of the automatic payouts. However, only those who have used no more than 10 Prime benefits in a 12-month period will be eligible.
Amazon Used Subscription Traps
According to the FTC, Amazon used complex subscription traps that used manipulative layouts to get people to sign up for Prime. They found that the enrollment practices were deceptive and that the cancellation options were hard to find. The FTC noted that this had affected around 35 million customers. Yet, Amazon stated that the company has always followed the law. According to them, this settlement is purely to move forward and “focus on innovating for customers.” However, whether lawful or not, many of these practices still seem shady when examined closely. In some of the online flows, the button that customers clicked to finish buying an item didn’t clearly state that they would also be enrolled in Prime’s auto-renewing trial. The option to continue without Prime was far harder to find and purposefully obscured. Once subscribed, trying to cancel the subscription often sends customers through endless detours.
To the FTC, this was clear evidence that many of these individuals had no intention of joining the subscription in the first place. In addition to the settlement, Amazon was told to make some major changes to its Prime enrollment and cancellation flows. This includes a clearly labeled button for shoppers to decline the Prime option. All the terms of Prime enrollment also need to be clear, including the cost and frequency of charges, as well as whether the subscription auto-renews. Additionally, they insisted that the cancellation process be more straightforward and easy to access. The company would also have to pay for a third-party supervisor to monitor the company’s compliance.
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The Bottom Line
If you enrolled in a Prime subscription without realizing it, or you had issues trying to cancel the subscription, you may be eligible for a refund. The first thing you need to do is figure out when you signed up and how often you used your Prime benefits. Many of these refunds will be paid automatically, but if you aren’t included in the automatic payouts, you may need to submit a claim. Make sure that you only use the official Amazon or FTC links, as any third-party links could be a scam. Keep an eye on your email linked to your Amazon account for any further notices.
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