Amazon will pay $1.5 billion in refunds after the FTC accused it of misleading Prime sign-ups. Eligible customers can receive up to $51
(Credit: Britannica)
Amazon $1.5 Billion Refund Deal: Amazon is now facing one of its biggest consumer payment ever after reaching a huge settlement with the Federal Trade Commission. Many people across the United States want to know how much money they could receive, because the deal includes a massive refund fund for Prime subscribers.
The company agreed to this after the FTC accused Amazon of making people join Prime through confusing steps and then making it too hard for them to cancel. Amazon will now pay a $1 billion civil penalty and also set aside another $1.5 billion for refunds.
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The FTC said Amazon tricked people into joining Prime by using what it called “challenged enrollment flows”, and these included the Universal Prime page, the shipping-option select page, Prime Video signup, and even single-page checkout. The FTC believed these designs pushed millions into paid memberships without clear consent. The case also said Amazon made leaving Prime very difficult for many users.
Under the settlement, the company will pay $1.5 billion directly to customers who qualify for refunds. Reports say nearly 35 million Prime members could be part of this, which makes this a giant case. Many people now want to know how much they can get from this refund pool and if they even qualify.
The refund rules are shaped around how and when someone joined Prime.
Anyone in the U.S. who became a Prime member between June 23, 2019 and June 23, 2025 may be part of the group, especially if they joined through one of those challenged sign-up flows or if they tried to cancel and were not able to do it.
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Court documents show that customers who used three or fewer Prime benefits during the first 12 months of their membership will get an automatic payment. That automatic payout can go up to $51. The rule is simple: fewer than four uses equals automatic refund.
People who used more than three Prime benefits during that same period can still get money, but they must send in a claim form. Their amount might be different, and it depends on how many people file claims and how much remains in the $1.5 billion fund after automatic payments go out.
So the top automatic number stays the same: $51. The money for claim-form users is not fixed because the final payouts depend on total claims filed by everyone in the program.
Anyone who thinks they qualify should check their Prime history from June 23, 2019 to June 23, 2025. If they used three or fewer benefits in their first year, they fall into the automatic category.
Amazon will send notifications by email, mail or in-app messages under the settlement. People who do not get an automatic payment but still meet the rules should fill out the claim form as soon as they get it.
This process matters because the total refund depends on how many people ask for their share. Many people will want the full $51, so early action helps ensure their place in the payout group.
The payout might look small for each person, but the number of people involved makes this settlement huge. A $1.5 billion refund spread across 35 million people averages about $43 each, so the $51 maximum fits the expected range.
The case also shows that regulators are watching subscription companies more closely now. Many businesses will study this settlement carefully because it shows how serious the FTC is becoming about clear sign-ups and simple cancellations.
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