Deadline for Amazon's $2.5B settlement claims is this week
Key Points:
- Amazon is offering a $2.5 billion settlement with the FTC, including $1.5 billion paid directly to Prime subscribers, over allegations of deceptive enrollment and cancellation practices for Prime memberships.
- Eligible U.S. consumers who unintentionally enrolled in Prime or faced difficulties canceling between June 23, 2019, and June 23, 2025, and used fewer than 10 Prime benefits can file a claim by July 27 to receive up to $51.
- The settlement requires Amazon to improve transparency by adding a clear opt-out button for Prime enrollment and disclosing membership costs and billing details more clearly.
- Amazon did not admit liability in the settlement, despite internal documents revealing company awareness of problematic subscription practices.
- The FTC warns consumers to beware of scams, emphasizing that it will not contact individuals directly about refunds, and payouts will be distributed by September 2026 after claim reviews.