Amazon will be required to pay $2.5 billion in fees and refunds to consumers.
Key Takeaways
- Amazon settled a lawsuit filed by the Federal Trade Commission (FTC) that accused the company of using “dark patterns to trick consumers” into signing up for Prime.
- The tech giant will be required to pay a $1 billion civil penalty, plus provide $1.5 billion in refunds to consumers.
- Here’s how to know if you’re eligible.
Last week, Amazon settled an antitrust lawsuit for $2.5 billion, after the Federal Trade Commission (FTC) accused the tech giant of deceiving tens of millions of customers to sign up for Prime subscriptions and then “knowingly” making the cancellation process difficult.
Amazon Prime membership costs $14.99 monthly, or $139 annually, and includes fast shipping, video streaming, and other benefits. The FTC filed the lawsuit two years ago, writing in a 159-page complaint that Amazon used “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically-renewing Prime subscriptions.” The trial was about to begin in Seattle just before the settlement.
In a press release, FTC Chairman Andrew N. Ferguson said that the “historic” settlement will be “putting billions of dollars back into Americans’ pockets” and ensure that “Amazon never does this again.”
In a statement, an Amazon spokesperson told Gizmodo: “Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers.”
The FTC notes that around 35 million consumers could have been affected and eligible for a refund. Here’s what we know.
Am I Eligible for an Amazon Refund?
If you “accidentally” signed up for Prime when, for example, you selected “free shipping” and didn’t realize you were being placed in a recurring charge membership, you could be eligible. This is considered a “challenged enrollment flow.” Customers who signed up for one of these “flows” might have a claim: Universal Prime Decision Page, Shipping Option Select Page, Prime Video, or Single Page Checkout.
Amazon Prime members who tried to cancel their Prime membership between June 23, 2019, and June 23, 2025, and were unable to do so, are also eligible.
However, if you used your membership after signing up more than three times in 12 months, you may no longer be eligible.
Related: Corporate Whole Foods Staff Will Soon Receive Employment Offers From Amazon
How Much Will I Get Paid from the Amazon-FTC Settlement?
There are no claim forms to fill out to get a refund for the first round. Amazon is automatically refunding eligible consumers within 90 days, capped at $51 per account, per Mashable.
Then, for round two, Amazon will send a claim form to those who used more than three Prime benefits within 12 months of signing up. This process continues until at least $1 billion is paid out of the Consumer Fund.
Key Takeaways
- Amazon settled a lawsuit filed by the Federal Trade Commission (FTC) that accused the company of using “dark patterns to trick consumers” into signing up for Prime.
- The tech giant will be required to pay a $1 billion civil penalty, plus provide $1.5 billion in refunds to consumers.
- Here’s how to know if you’re eligible.
Last week, Amazon settled an antitrust lawsuit for $2.5 billion, after the Federal Trade Commission (FTC) accused the tech giant of deceiving tens of millions of customers to sign up for Prime subscriptions and then “knowingly” making the cancellation process difficult.
Amazon Prime membership costs $14.99 monthly, or $139 annually, and includes fast shipping, video streaming, and other benefits. The FTC filed the lawsuit two years ago, writing in a 159-page complaint that Amazon used “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically-renewing Prime subscriptions.” The trial was about to begin in Seattle just before the settlement.
In a press release, FTC Chairman Andrew N. Ferguson said that the “historic” settlement will be “putting billions of dollars back into Americans’ pockets” and ensure that “Amazon never does this again.”
