Amazon owes Prime customers up to $51 each - how to get your share

Published: Monday, September 29, 2025 at 6:33 pm

Amazon to Pay Billions in Refunds to Prime Subscribers

The Federal Trade Commission (FTC) has ruled that Amazon must pay a total of $2.5 billion to address deceptive practices related to its Prime subscription service. This includes a $1 billion penalty and $1.5 billion in refunds for affected consumers. The FTC alleges that Amazon misled millions of customers into signing up for full Prime subscriptions and made the cancellation process unnecessarily complex.

The FTC's investigation revealed that some customers, attempting to subscribe to the cheaper Amazon Prime Video service, were instead enrolled in the more expensive, automatically renewing Prime membership. The commission has stated this is the largest civil penalty ever in a case involving an FTC rule violation.

As part of the settlement, Amazon is required to implement several changes to its Prime subscription process. These include creating a clear and conspicuous button for customers to decline a full Prime subscription, providing clear disclosures about all Prime terms during enrollment, and establishing a simple cancellation process using the same method as signup. Furthermore, Amazon must pay for an independent, third-party supervisor to monitor its compliance with these new policies.

Millions of Amazon Prime subscribers who signed up since 2019 will automatically receive reimbursements, potentially up to $51 each. The exact amount each customer receives will vary based on their use of Prime benefits, such as free shipping. Other Amazon users will be able to submit claims once the filing process begins.

Amazon spokesperson Mark Blafkin stated that the company strives to make the signup and cancellation processes clear and simple, and that Amazon and its executives have always followed the law.

BNN's Perspective:

While the FTC's actions are a win for consumer protection, it's important to acknowledge Amazon's commitment to its Prime service. The company has provided significant value to its members over the years. This settlement highlights the need for transparency and clarity in subscription services, ensuring that consumers are fully informed about the terms and conditions of their memberships. It also underscores the importance of regulatory oversight in the digital marketplace.

Keywords: Amazon, Prime, FTC, refunds, subscription, settlement, deceptive practices, cancellation, consumer protection, reimbursements, Prime Video, civil penalty

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