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Amazon users can claim one-time payment from ‘historic’ Prime settlement

Amazon to settle lawsuit over Prime. Here’s what it means for you
  • Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) concerning its Prime membership program.
  • The FTC alleged that Amazon misled millions of users into subscribing to Prime and deliberately made the cancellation process convoluted.
  • The settlement includes a $1 billion civil penalty, the largest ever in a case involving an FTC rule violation, and $1.5 billion that will be paid out to eligible customers.
  • Customers who signed up through Amazon's “Single Page Checkout” between June 23, 2019, and June 23, 2025 could be eligible for payment.
  • Amazon, while admitting no wrongdoing, must now provide clear disclosures about Prime terms during enrollment and offer an easy method for users to cancel their subscriptions.
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