FTC Nails Amazon Prime for $2.5 Billion Settlement in Unauthorized Subscription Grift

FTC Officials now warn consumers to be on alert for scams related to the settlement

FEDERAL TRADE COMMISSION – Amazon agreed last week to pay $2.5 billion to settle charges brought by the Federal Trade Commission that the company enrolled millions of people in Prime subscriptions without their consent and then made it difficult for them to cancel.

Of the settlement, $1.5 billion will be returned to consumers, leading many people to ask who will receive the refunds, how the process will work, and whether any action is required.

For now, consumers do not need to do anything. The refunds will be issued automatically and are expected to be sent out by December 25, 2025.

Additional information about the refunds is available at ftc.gov/Amazon.

To be eligible for a refund of up to $51 in Prime membership fees, individuals must meet three conditions:

■ They must be U.S.-based Amazon Prime customers.

■ They must have either signed up for Prime between June 23, 2019, and June 23, 2025, through one of the enrollment methods challenged by the FTC, or attempted to cancel during that same period but were unsuccessful.

■ They must have used fewer than three Prime benefits, such as streaming Prime Video or listening to Amazon Music, during any 12 months following enrollment.

Officials also warn consumers to be on alert for scams related to the settlement.

Scammers often use the names of well-known companies or government agencies to trick people into disclosing personal information or paying money.

The FTC will not contact anyone about these refunds, and neither the FTC nor Amazon will ask for payment to release a refund. Anyone claiming to offer special access or guaranteed refunds is likely a scammer.

If someone receives an unexpected call, text, or email claiming to be from the FTC or Amazon about this settlement, they are urged to report it to the FTC at ReportFraud.ftc.gov. 

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