Personal Finance

Amazon 1.5 Billion Settlement: Amazon Prime users eligible for payments up to $51

Millions of Americans will receive cash from Amazon after a $2.5 billion settlement over misleading Prime subscriptions. Refunds up to $51 will be issued automatically, with claims accepted until July 23, 2026.

Amazon 1.5 Billion Settlement: Millions of Americans are set to receive unexpected cash payments from Amazon in the coming weeks. This is part of a major federal settlement that resolves one of the largest consumer protection cases in recent history. Amazon agreed to pay $2.5 billion to settle accusations that it misled millions of people into subscribing to Amazon Prime and then made cancellation unnecessarily difficult.

The Federal Trade Commission (FTC) filed the lawsuit in 2023. It alleged that Amazon’s enrollment design tricked customers into joining Prime and buried options to opt out. The agency said roughly 35 million users were affected by what it described as manipulative digital patterns, which led people to pay for a service they never intended to keep. In its official press release, the FTC referred to these practices as instances of “unwanted Prime enrollment” and “deferred cancellation.”

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Amazon, however, maintains that it has always acted lawfully. In a statement released last month, the company said it “always followed the law” and worked “incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership.” Despite denying any wrongdoing, Amazon chose to settle the matter rather than face years of litigation and the reputational costs that often follow.

Who is Getting Paid?

According to court documents, Amazon will pay $1 billion in civil penalties, while $1.5 billion will be distributed as direct refunds to eligible consumers. The FTC noted that this restitution fund ranks as the second-largest in its history. The exact amount each customer receives will depend on the total Prime membership fees paid, but a federal order caps individual payments at $51.

The settlement covers Prime subscribers who joined between June 23, 2019, and June 23, 2025, and who either tried unsuccessfully to cancel their membership or signed up through what the FTC calls a “challenged enrollment flow.” That term refers to specific parts of Amazon’s website, such as the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment, or the Single Page Checkout, where the enrollment process allegedly steered users toward unwanted subscriptions.

How to Claim Your Refund?

Eligible users must also have used their Prime benefits three or fewer times during any 12-month period of enrollment to qualify for automatic payment. For most people the refunds will be issued automatically and should arrive by December 24.

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Customers who do not receive a payment but believe they qualify will have the opportunity to file a claim. A third-party claims administrator is overseeing the process and will begin accepting claim forms in early 2026. According to the FTC, the final deadline to submit a claim is July 23, 2026.

Farheen Ashraf

Farheen Ashraf is a History graduate. She writes on a variety of topics, including business, entertainment, laws, poetry, stories, travel, and more. Her passion for writing has led her to explore a variety of genres.

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