Amazon Settlement: Prime Members to Receive $1.5 Billion
The Federal Trade Commission (FTC) accused Amazon of registering customers for Prime memberships without their explicit consent. As a result, Amazon Prime subscribers who were unknowingly enrolled in the service may now qualify for compensation under a $2.5 billion settlement.
Background of the Case
The FTC claimed that Amazon violated its rules by misleading millions of users into joining Prime. The company was also criticized for making the process of canceling memberships unnecessarily complicated. While Amazon agreed to the settlement, it did not admit to any wrongdoing.
“The FTC accused Amazon of enrolling customers in Prime subscriptions without their consent.”
Settlement Breakdown
Under the terms of the agreement, $1.5 billion will be distributed among approximately 35 million affected consumers. The remaining $1 billion will serve as a civil penalty — the largest of its kind for an FTC rule violation.
Eligibility and Payout Details
- Payments are available to Prime users who registered between June 23, 2019, and June 23, 2025.
- Consumers who joined through a “challenged enrollment flow” and used fewer than three Prime benefits will automatically receive payments.
Key Facts
- Total settlement amount: $2.5 billion
- Consumer payout fund: $1.5 billion
- Civil penalty: $1 billion
Author’s Summary: Amazon will distribute $1.5 billion to misled Prime users after reaching a $2.5 billion FTC settlement, though the company has not admitted liability.