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Millions of current and former Amazon Prime customers have just days left to claim money from Amazon’s $2.5 billion lawsuit settlement with the Federal Trade Commission (FTC), where $1.5 billion is available in consumer refunds.
The deadline to file a claim is July 27. That means eligible customers have less than a week to seek a payment of up to $51.
The settlement stems from allegations that Amazon enrolled customers in Prime subscriptions without their consent and made it difficult to cancel. The FTC alleged that Amazon used “manipulative, coercive or deceptive user-interface designs” to do so and that tens of millions of consumers were affected.
Amazon denied wrongdoing but agreed to settle the case in September of last year, saying the settlement “allows us to move forward and focus on innovating for customers.”
What Is the Amazon $2.5 Billion Settlement?
The settlement resolves a lawsuit filed by the FTC against Amazon in 2023.
“The money is being distributed due to the FTC alleging Amazon used confusing enrollment screens to sign people up for Prime without any form of meaningful consent and then made cancellation difficult,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“For other businesses, the larger message is that subscription growth cannot come at the expense of being more transparent with customers on fees and the renewal process.”
Amazon has denied violating the law but agreed to settle the case in September. The company also agreed to modify certain enrollment and cancellation practices for Prime memberships.
Consumers who qualify can receive a refund of Prime subscription fees, capped at $51 per person, though final payments may vary depending on the number of approved claims.
“Amazon’s paying $1.5 billion in consumer refunds because the way they designed their cancellation button was deceptive. Not a hack. Not a data breach. The FTC said the enrollment and cancellation flow itself violated federal law,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“That matters because it’s a direct message to every subscription business: Your button design is now compliance risk.”
Who Is Eligible for the $2.5 Billion Settlement?
According to the FTC, consumers must meet several requirements to qualify. Eligible claimants generally must:
- Be a U.S. Amazon Prime customer.
- Have enrolled in Prime through one of the enrollment methods challenged in the lawsuit, or attempted to cancel and been unable to do so, between June 23, 2019, and June 23, 2025.
- Have used fewer than 10 Prime benefits during a 12-month enrollment period.
- Have not already received an automatic payment during the first settlement phase.
Some customers were automatically identified and paid in late 2025 and do not need to take further action.
Deadline to Claim $2.5 Billion Settlement
The deadline to submit a claim is Monday, July 27. The claims period originally opened on January 5.
Customers who miss the deadline could lose their opportunity to receive compensation from the settlement. Eligible claimants may receive up to $51, although the actual amount could depend on the number of approved claims and other settlement calculations.
How to File a Claim in Amazon Settlement
Eligible consumers can file a claim through the official settlement website after receiving a settlement notice.
The FTC says Amazon began sending claim notices by email and mail in January to potentially eligible customers.
However, consumers should also be cautious about scams related to the settlement. The FTC has warned that it will not contact consumers demanding money or asking them to pay fees to receive a refund.
What Happens Next
After claims are submitted, Amazon will review applications to determine eligibility. Consumers whose claims are approved could receive payments later this year.
However, for other businesses with subscription services, the impact of the settlement could be far-reaching.
“This isn’t just Amazon policy cleanup,” Ryan said.
“Streaming services, meal kits, software subscriptions…they’re all watching how Amazon got ordered to add a one-click cancel button that matches how you enrolled.”
Contact Newsweek editors on this story: Jenni Fink and Sam Wilson.
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