Amazon Prime members receiving share of $1.5B settlement, many payments coming before Christmas
Summary
Amazon and the Federal Trade Commission (FTC) have reached a $2.5 billion settlement regarding claims that Amazon knowingly misled millions of consumers into enrolling in Prime subscriptions and made cancellation unnecessarily difficult. Of this, $1.5 billion is allocated for payments to an estimated 35 million affected consumers, while the remaining $1 billion is a civil penalty. Prime users who signed up between June 23, 2019, and June 23, 2025, are eligible, divided into two groups. The first group, those who signed up through specific enrollment flows and used fewer than three Prime benefits, are receiving automatic payments of up to $51 by December 25, 2025. The second group must file a claim if they signed up through the same methods or experienced cancellation difficulties, and used no more than 10 Prime benefits in a 12-month period. Amazon will also improve its enrollment and cancellation processes, including adding a clear option to decline Prime and simplifying the cancellation method.
(Source:Mlive)