First Prime Day incorporating drone delivery in Arizona
Zoe Richmond talks about Amazon drone delivery fulfillment center in Arizona on July 9, 2025. Drones can deliver to a 7-mile radius in one hour or less.
- Amazon will pay a $2.5 billion settlement following an FTC lawsuit over deceptive Prime subscription practices.
- As part of the agreement, Amazon will make its subscription and cancellation processes more transparent.
- Eligible customers who were enrolled in Prime and used few benefits may receive up to $51.
Amazon agreed to pay a $2.5 billion settlement after the Federal Trade Commission accused the company of manipulating customers into joining its subscription service and making it extremely hard to cancel.
The commission filed an anti-trust lawsuit against Amazon in June 2023 after receiving millions of customer complaints claiming Prime customers were paying for subscriptions they never actually signed up for.
Leading up to the trial, FTC investigators indicated in a news release that Amazon executives and employees knew about the issue but had made no moves to resolve it.
Here’s everything to know about the class action lawsuit and settlement.
Amazon agrees to pay $1.5 billion to customers
As part of the settlement agreement, Amazon admitted no wrongdoing but agreed to adhere to several changes to its interface, including:
- Ensuring there is a clear and conspicuous button for customers to decline Prime and removing the button saying, “No, I don’t want Free Shipping.”
- Providing clear and conspicuous disclosures of the terms of Prime, including costs, charges and cancellation procedures.
- Creating an easy way for consumers to cancel Prime, using the same method that consumers used to sign up.
- Paying for an independent, third-party supervisor to monitor its compliance.
Amazon also agreed to pay $1 billion in civil penalties and $1.5 billion in consumer relief for roughly 35 million impacted customers. According to court documents, some eligible customers will automatically receive up to $51 in relief, while others will have to submit a claim.
“Amazon and our executives have always followed the law and this settlement allows us to move forward and focus on innovating for customers,” Amazon’s Senior Manager of Policy Communications Mark Blafkin said in a statement. “We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.”
Who is eligible for the Amazon Prime settlement?
There are two categories to fall under in order to qualify for the payment.
- Amazon users who signed up for a Prime account between June 23, 2019, and June 23, 2025, and have used 3 or less Amazon Prime benefits over any 12-month period of enrollment will receive an automatic payment. “Benefits” are described as anything a member would not receive without the Prime subscription.
- Those who do not meet the requirements above will have to file a claim in order to get a payout. To file a claim, you must have signed up for a Prime subscription between June 23, 2019, and June 23, 2025, and have not used more than 10 Amazon Prime benefits over any 12-month period of enrollment.
How much will you get from the settlement?
The amount each claimant will get depends on the fees they received during their subscription period, however, payouts max out at $51.
How to claim Amazon settlement money?
Customers who qualify for the automatic payout should receive their claim within the next 90 days.
Customers who do not qualify for the automatic payouts will have to wait until after the first payout. Amazon is then required to send out claim forms with 30 days of the first payout. Customers will then have 180 days to file their claim.
It was still unknown how claimants would receive their payments.
