Amazon owes Prime members $1.5 billion in a legal settlement. Are you eligible?
Amazon reached a $2.5 billion settlement with the government this week over allegations of confusing millions of people into subscribing to Prime and making it difficult to cancel.
The Federal Trade Commission filed the complaint in 2023. The settlement announced Thursday calls for Amazon to pay $1 billion in civil fines, the largest in FTC history, and $1.5 billion to certain Prime customers. The agreement, if approved by a judge, also requires the e-commerce giant to make changes to the Prime enrollment and cancellation process.
Amazon settled the case without admitting to or denying the accusations that it violated consumer protection laws, The Wall Street Journal reported.
The FTC claimed that Amazon forced Prime members to navigate four webpages and choose from 15 options to cancel. The lawsuit also outlined that Amazon cannot have a button that says “No, I don’t want Free Shipping,” when cancelling the membership. Amazon said during court hearings that its current Prime sign-up process is already what the settlement requires.
Currently, Prime membership costs $14.99 a month or $139 a year. Membership includes benefits like free fast delivery, free Grubhub delivery, streaming for movies, TV and music, free reading and audiobooks and even some medical benefits.
If you’re a Prime member, you may be eligible for a slice of the $1.5 billion settlement restitution.
Who is eligible in the $2.5 billion Amazon settlement?
Amazon is the largest paid-subscription program in the world with nearly 200 million users. About 35 million Amazon Prime members are entitled to part of the settlement’s restitution.
Eligible Prime members for a payout include:
- Customers who used three or fewer Prime benefits during any 12-month period from June 23, 2019, to June 23, 2025, are automatically eligible for a $51 payment.
- Customers who used 10 or fewer Prime benefits during that same time period are also eligible for a $51 payout, but they will need to do so by applying through a claims process.
How to apply for a $51 settlement payout from Amazon
Amazon will email eligible customers about the settlement payout. The company also will post the settlement information on its website and mobile app.
When will Amazon pay Prime customers in the settlement?
The first wave of automatic payments of $51 is for customers who used three or fewer Prime benefits during a 12-month period. These consumers will not need to submit a claim and will receive the payment within a 90-day period.
The second wave of payments will come after the automatic pay out period has ended within 30 days. Those who have used Prime benefits 10 times or fewer during a 12-month period will need to fill out claim forms.
Claim-filers will have to confirm whether they unintentionally enrolled or unsuccessfully canceled their membership, or both. Then, they have 180 days to submit a claims form. Amazon then has 30 days to review the claim and pay the $51.
How will Amazon make Prime enrollment, cancellation easier?
The FTC settlement requires Amazon to ease its Prime enrollment and cancellation process by:
- Creating a clear and concise way for customers to decline Prime.
- Clearly stating the cost of membership, the date and frequency of subscription charges, whether the subscription auto-renews, and cancellation procedures.
- Creating an easy way for customers to cancel Prime by making it the same way they signed up.
- Hiring a third-party service to monitor Amazon’s pay out process.
This story was originally published September 26, 2025 at 12:07 PM.