Core Points - Amazon is set to pay $1.5 billion to customers as part of a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding its Prime subscription service [1] - The FTC's allegations include claims that Amazon "knowingly duped" customers into enrolling in automatically renewing Prime subscriptions and made the cancellation process complicated [1] - A previous investigation revealed that Amazon executives were aware of the confusing cancellation process but did not take corrective actions [1] Settlement Details - Customers who signed up for Prime between June 23, 2019, and June 23, 2025, may receive up to $51 based on the settlement terms [2] - Eligibility for payments includes customers who attempted to cancel their Prime subscription unsuccessfully or accepted offers to retain their subscription during that period [2] - Prime members who used "no more than 3 Prime benefits" in their first year and enrolled through a "challenged enrollment flow" will receive automatic payments [3] Payment Process - Refunds are automatic and are expected to be distributed by December 25, 2025, as stated by the FTC [4] - Amazon will also consider claims from customers who used "no more than 10" Prime benefits in their first year, with potential payments up to $51 each, although actual payouts may be less than the maximum [7] Company Statement - In response to the settlement, Amazon emphasized its commitment to transparency in the sign-up and cancellation processes for Prime [8] - The company stated its efforts to make the process clear and simple for customers while providing substantial value to Prime members [8]
How to get a piece of Amazon's $2.5 billion settlement over allegations it 'duped' Prime subscribers